Leading German insurers Allianz and Munich Re have decided to renew coverage for damage to the Nord Stream 1 gas pipeline, hit by an alleged sabotage attack last autumn. This is a sign that in the future, if the war in Ukraine ends and relations with the Kremlin improve, the pipeline could return to pumping Russian hydrocarbons to Europe via Germany. It’s apparently a decision that contradicts Berlin’s choice to cut ties with Moscow and move the country to full autonomy from the gas of the federation led by Vladimir Putin.
Financial support from insurance companies is crucial for the future of the now disused gas pipeline, which has been the preferred route for the arrival of Russian gas to Europe for over a decade. According to Reuters, citing sources who remained anonymous for security reasons, Olaf Scholz’s government would not oppose the choice of insurance companies, even if the Prime Minister declined to comment. Moscow has a 51% stake in the power plant through Gazprom, followed by the Germans as well as the French Engie and the Dutch Nederlandse Gasunie to maintain the functionality of the damaged gas pipeline. With the renewed policy, the damages that may occur at the power plant and the problems after the cessation of the activity are covered. The existence of this insurance greatly facilitates the start of costly repairs, which could cost close to half a billion euros, given the future recovery of hydrocarbon traffic deep in the Baltic Sea.
As one of the Reuters sources reported, Berlin’s tolerance does not eliminate the country’s government’s will to withdraw from Russian energy supplies. Although gas imports from Russia are allowed by the European Union, Germany, like all the West, is looking for alternative routes. Since the beginning of the Ukraine conflict, the availability of Russian gas in EU member states has dropped from 40% to less than 10%. A spokesperson for the German Ministry of Economy underlined that the aim is to stop natural gas imports from Moscow. “Russia has proven to be an unreliable partner, Europe needs clean energy and getting rid of fossil fuel imports,” he said.
Although the previous energy policy close to Moscow is no longer viable, many still hope that ties with the Kremlin can be re-established right after the Nord reopens, according to Veronika Grimm, the government’s economist who advises the prime minister. Stream 1. The conservative leader of East Saxon, Michael Kretschmer, told the Berliner Zeitung that the pipeline needed to be repaired and that Berlin should not ignore the possibility of re-importing from here. Until last month, there was no pipeline repair project that could be commissioned in the medium term, again according to anonymous sources, Nord Stream had to be shut down.
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
