REUTERS

The International Group of Protection and Indemnity Clubs (IG P&I) has refused to provide insurance coverage to vessels involved in the Nord Stream 2 or TurkSteam construction projects.

The relevant IG Circular was published by the Shipowners' Club on September 21.

Strong recommendation

Read alsoEuropean Parliament demands halt to Nord Stream 2 project over Navalny's poisoningThe Group says that the agreement to insure the vessels would jeopardize the Club for violating the Countering America's Adversaries Through Sanctions Act (CAATSA) and the Protecting Europe's Energy Security Act (PEESA).

"All Members are therefore strongly urged to assess and mitigate the risks of entering into contracts on the Nord Stream 2 or TurkSteam construction projects and exercise the fullest possible due diligence to avoid exposure to sanctions or enforcement actions," reads the IG Circular.

"There shall be no cover for any vessels involved in activities that are either unlawful and/or put the Club at risk of breaching sanctions. In view of the direct sanctions threat posed to insurers by CAATSA and PEESA, there will be no Club cover for any activity involving or related to the Nord Stream 2 or TurkSteam construction projects," the document reads.

Sanctions against Nord Stream 2: Background

  • On September 7, a representative of the German Chancellor said on September 7 that Angela Merkel did not exclude that the situation around the poisoning of Russian opposition politician Alexei Navalny could tell on the future of the Nord Stream 2 gas pipeline.
  • On September 8, 2020, the Kremlin said they did not see grounds for negotiations with Germany on Nord Stream 2.
  • On the same day, September 8, Polish Prime Minister Mateusz Morawiecki said that Germany should stop building Nord Stream 2.
  • On September 9, 2020, Poland offered Germany an alternative to Nord Stream 2.
  • On September 11, 2020, the German authorities announced that they were considering the suspension of Nord Stream 2 as a response to the situation with the poisoning of Russian opposition leader Navalny.
  • On September 12, 2020, EU High Representative for Foreign Affairs and Security Policy Josep Borrell said that the decision to freeze the Nord Stream 2 gas pipeline was in the hands of Germany, rather than the European Union.
  • On September 13, 2020, Denmark backed the halt of the Nord Stream 2 construction.
  • On September 16, 2020, the Austrian president said that he did not see a link between Nord Stream 2 and Navalny's poisoning.
  • On September 17, 2020, the European Parliament demanded that sanctions against Russia should be strengthened and the construction of the Nord Stream 2 gas pipeline should be halted.