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German insurers are backing the damaged Nord Stream gas pipeline despite their country severing energy ties with Russia

Nord Stream 1The Nord Stream natural gas pipeline.

Stefan Sauer/Getty Images

  • German insurers Allianz and Munich Re have renewed cover for the ruptured Nord Stream 1 gas pipeline, per Reuters. 
  • The insurance policy covers costs of damages to the key pipeline and business interruption issues. 
  • The move appears to be at odds with Germany’s public stance of breaking energy ties with Russia after it invaded Ukraine. 

German insurers will renew cover for the Nord Stream 1 natural gas pipeline that blew up last year after alleged sabotage attacks, according to Reuters

Allianz and Munich Re have restarted their insurance policy for the key pipeline, which transported natural gas from Russia to the rest of Europe for a decade before the explosion. 

The insurance policy guarantees costs of damages to the pipeline and business interruption issues, sources familiar with the matter told the outlet. It would also allow any repair work needed to resume gas supplies under the Baltic Sea, another source said. 

Last September, explosions ruptured the Nord Stream pipelines and set the Baltic sea boiling with leaking methane gas. It disrupted the supply of Russian gas to the European continent and exacerbated a crippling energy crisis, given Moscow typically supplied about 40% of the continent’s natural gas.

Several countries including the US, Germany, Denmark and Sweden have launched investigations into the explosions, which are still in progress. While US and European officials blamed Russia for “gross sabotage,” Moscow insists it didn’t destroy the pipeline.  

The cover extended by Germany’s two biggest insurers starkly contrasts the country’s public stand of breaking energy ties with Moscow after it invaded Ukraine. Earlier this year, the country’s finance minister told the BBC that Germany is no longer dependent on Russian imports for its energy supply – which used to account for 35% of the country’s imports of natural gas.

Read the original article on Business Insider
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