German company Munich Re does not plan to extend reinsurance for the Nord Stream 1 pipeline after it expires later in 2023, reported Reuters.
Munich Re did not elaborate on the decision.
In a statement on its website, Allianz said: “The policy will expire in late 2023, is not currently up for renewal, and Allianz does not intend to renew this policy.
“This policy was underwritten before the Russian invasion of Ukraine for a two-year period and we are under contractual obligation to our policyholders subject to all sanctions.”
Earlier, sources told the news agency that Munich Re and Allianz were among the European insurance companies that have renewed coverage for the Russian-controlled pipeline.
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According to one of the sources, the insurance covers damage to the pipeline and issues causing interruption to the business.
Additionally, having insurance would make it easier for any repairs to be made to continue gas shipments to Europe across the Baltic Sea.
European Union (EU) sanctions prohibit the import of Russian crude oil and oil products, while Russian gas imports are permitted.
Last September, Nord Stream 1 and Nord Stream 2, which are crucial to Europe’s energy security, were damaged due to multiple explosions.