A London High Court judge, Dame Clare Moulder, has ruled that insurers are not obligated to pay out nearly €580 million to Nord Stream SE for damage to the Nord Stream 1 pipelines. The ruling concluded that the 2022 explosions that ruptured the gas pipelines under the Baltic Sea were likely caused by warring states or entities acting on their behalf, thus triggering "war exclusion" clauses in the insurance policies held by Lloyd's and Arch Insurance. This decision marks a significant development in the legal battle over responsibility for the infrastructure sabotage.
Nord Stream SE had sought an indemnity of just under €580 million, arguing that the explosions were not necessarily linked to state-sponsored actions or the ongoing conflict in Ukraine. However, the insurers successfully argued that the sophisticated nature of the attack and the geopolitical context strongly indicated state involvement, whether from Russia, Ukraine, or the United States, or state-backed sub-state actors from Ukraine. The judge stated that the insurers did not need to definitively identify the perpetrators, only to prove that war-related exclusions applied.
The case has been closely watched as it sets a precedent for how war clauses are interpreted in high-risk contracts, particularly for major energy infrastructure. The outcome could influence future project financing and capital markets. While investigations by authorities in Germany and Sweden continue to establish definitive responsibility for the blasts, this court ruling shifts the financial burden away from the insurers, affecting the claims for damages that severely disrupted Russian gas supplies to Europe.
