German insurers continue to cover Nord Stream — Reuters

Two major German insurance companies have renewed coverage of the damaged Nord Stream 1 gas pipeline, Reuters reported on Tuesday. The pipeline, which runs under the Baltic Sea and is capable of carrying 55 billion cubic meters of gas annually, was the main direct route for natural gas deliveries from Russia to Germany before being sabotaged last September. The renewal of insurance by Allianz and Munich RE means that bringing the pipeline back into service has not been ruled out. The German government did not oppose the renewal, which is critical for any long-term future of the pipeline. Some of Nord Stream’s German shareholders (the energy companies Wintershall Dea AG and PEGI/E.ON) reportedly want to at least preserve the damaged pipeline in case relations with Moscow improve.

The insurance policy covers damage to the pipeline and business interruption issues. The supply of gas via Nord Stream to the EU was reduced and then suspended altogether last year due to sanctions against Russia and technical issues. In September, a series of underwater blasts ruptured Nord Stream 1 and damaged parts of the newly-built Nord Stream 2 pipelines. The German government continues to state that it aims to stop importing Russian