German insurers have resumed coverage of Nord Stream-1

German insurance companies have restored insurance coverage for the Nord Stream 1 gas pipeline, which was damaged after the explosions in September.

Insurers Allianz and Munich Re have renewed coverage for the russian-controlled Nord Stream 1 gas pipeline. This was reported by Reuters with reference to five sources familiar with the matter.

The coverage by Germany’s two biggest companies is crucial to the long-term future of the pipeline, which was the main route for russian gas to Europe for a decade before the September 2022 explosion.

The coverage runs counter to Germany’s public stance on severing ties with moscow, but one source told Reuters the German government had no objection to the coverage. Most Western investors have written off their stakes in the pipeline.

Munich Re, Allianz and the German chancellery declined to comment, while the economy ministry said insurance was not part of the government’s support for the pipeline in the past.

Russia has a 51% stake in Nord Stream 1 through a subsidiary of state energy group Gazprom.

Some of Nord Stream’s German shareholders favor at least preserving the damaged pipeline if relations with Moscow improve, two people familiar with the matter said separately.

One of the interviewees said that Berlin tolerates this approach to infrastructure, despite the announcement of the severance of energy ties with russia.

All the insurance industry and trade sources declined to be named because of the “sensitivity of the matter.”

The insurance policy covers pipeline damage and service interruption issues. Having the insurance in place will also facilitate any repair work needed to restore Baltic gas supplies to Europe.