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The International Group of P&I Clubs has decided not to provide insurance coverage to ships that will participate in constructing the Nord Stream 2 gas pipeline, NEWS.ru reports.
The group insures 90 percent of the world’s ships.
The reason is the current and possible sanctions for the project. The decision, which will further complicate the search for vessels capable of completing the construction of the gas pipeline, has been taken by all the clubs in the International Group. Moreover, the circular issued by it also mentions another gas pipeline – the Turkish Stream.
In light of the direct sanctions threat to insurers posed by the US CAATSA (The Countering America’s Adversaries Through Sanctions Act) and PEESA (Protecting Europe’s Energy Security Act), the club won’t provide insurance coverage for activities related to the Nord Stream 2 or the Turkish Stream, the document says.
Only about 6 percent of the Nord Stream 2 gas pipeline remains to be laid along the bottom of the Baltic Sea. The work will be carried out in the exclusive economic zone of Denmark. The work was stopped in December 2019 after the adoption of the PEESA law in the US Congress.
The Russian project Nord Stream 2 provides for constructing two pipeline strings with 55 bn cubic meters per year from the coast of Russia through the Baltic Sea to Germany. Construction of the project was halted late last year due to US sanctions.
The object is now 97% complete. It remains to complete about 3% (mainly in the waters of Denmark). This summer, the Danish Energy Agency allowed Nord Stream-2 to lay pipes using conventional positioning vessels.