Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content

EnergyMunich Re stops insuring Nord Stream 2 amid sanctions threat

Reuters
2 minutes read

A road sign directs traffic towards the Nord Stream 2 gas line landfall facility entrance in Lubmin, Germany, September 10, 2020. REUTERS/Hannibal Hanschke/File Photo

A subsidiary of Germany's Munich Re (MUVGn.DE) will no longer insure the Nord Stream 2 pipeline from Russia to Europe amid the fear of sanctions by the U.S. government.

The U.S. has been threatening sanctions against European companies that support construction of the $11 billion gas pipeline, and Zurich Insurance Group (ZURN.S) dropped out last month. read more

"Munich Re Syndicate has issued the notice of termination to Nord Stream 2," a spokesman said in an emailed statement on Tuesday, referring to the company's subsidiary.

Munich Re declined to provide further details. read more

The pipeline is more than 90% complete and Russia's state energy company, Gazprom (GAZP.MM), and its Western partners are hoping to finish it this year. Much of the remaining work is difficult and in deep waters off Denmark. read more

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 that "they have described as contrary to international law and an interference in energy policy sovereignty".

Our Standards: The Thomson Reuters Trust Principles.