The International Group of P&I Clubs, the world’s largest group of shipping insurers, said that it would not insure vessels linked to Nord Stream 2 and TurkStream gas pipeline projects due to the threat of US sanctions. The association urged members to assess and mitigate the risks of signing contracts with players involved on both Russian-led projects to avoid exposure to US sanctions. The industry group represents global top 13 ship insurers covering almost 90% of the world’s ocean-going tonnage.
Gazprom holds a 51% stake in the $11 billion Nord Stream 2 pipeline project, which will expand the capacity of the existing Nord Stream 1 by 100%. The project is over 90% complete with startup expected next year. Other stakeholders include Germany’s E.ON and Wintershalee, France’s Engie, and Dutch Gasunie. Meanwhile, the 930-km TurkStream, which stretches across the Black Sea to Turkey, started operation earlier this year.
German Chancellor Angela Merkel is facing calls to stop the Nord Stream 2 after the suspected murder attempt of Russian opposition leader Alexei Navalny by Kremlin in August. Meanwhile, Washington has warned investors that being involved in the two projects can trigger US sanctions, in an effort to curb Moscow’s dominance in the European energy market.
