Nord Stream AG, the operator of the Nord Stream gas pipelines, has lost a lawsuit in London’s High Court against a group of insurers seeking approximately €580 million. The judge ruled that the insurance companies—including Lloyd’s of London—are not liable to cover losses resulting from the explosions that damaged the pipelines in the Baltic Sea in September 2022.
According to the ruling by Justice Clare Moulder, the damage to the Nord Stream 1 pipeline (and the associated losses) was “directly or indirectly caused by, or arose from or in consequence of, war.” This triggered a war-risk exclusion clause in the insurance policy.
The insurers—including Lloyd’s Insurance Company and Arch Insurance—had argued from the outset that the explosions were a consequence of the Russia-Ukraine conflict and actions linked to war or state orders. Such risks are not covered under the “all-risks” policy for marine infrastructure. Nord Stream AG had sought compensation for damages, including the cost of the destroyed equipment and the lost gas (valued at approximately €72 million).
The explosions affecting both lines of the Nord Stream system in September 2022 resulted in one of the largest man-made disasters in the history of energy infrastructure. Investigations in several countries are ongoing, yet no one has officially been held responsible for the sabotage.
The court’s decision marks a significant victory for the insurance industry, which has avoided one of the largest payouts in history for incidents of this nature. Nord Stream AG has not yet commented on the possibility of an appeal.