Munich Re stops insuring the Nord Stream 2 pipeline for fear of US sanctions

A subsidiary of the German Munich Re will no longer provide the Nord Stream 2 gas pipeline between Russia and Europe for fear of sanctions from the US government.

The United States has threatened European companies that support construction of the $ 11 billion gas pipeline with sanctions, and Zurich Insurance Group dropped out last month.

“Munich Re Syndicate has issued the termination notice to Nord Stream 2,” a spokesperson said in an emailed statement on Tuesday, referring to the company’s subsidiary.

Munich Re declined to provide further details.

The pipeline is more than 90% complete and Russian state energy company Gazprom and its Western partners hope to complete it this year. Much of the remaining work is difficult and in the deep waters off Denmark.

Nord Stream 2 declined to comment on Munich Re’s decision but said it was up to European governments and the European Commission to protect European companies from sanctions they described as contrary to international law and interference in the sovereignty of energy policy.

(Reporting by Tom Sims; editing by Riham Alkousaa, Caroline Copley and Giles Elgood)

Photograph: Tugs move into position on the Russian pipelaying vessel “Fortuna” in the port of Wismar, Germany, in this photo taken Thursday, January 14, 2021. The special vessel is being used for construction work on the Germano -Russian Nord Stream 2 pipeline in the Baltic Sea. Photo Credit: Jens Buettner / dpa via TBEN, File.