Page 11 - FSUOGM Week 03 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Swiss insurer reportedly drops

out of Nord Stream 2

EUROPE SWISS-BASED Zurich Insurance Group will place and is committed to fully comply with any
withdraw from Russia’s Nord Stream 2 pipeline, applicable sanctions regulations.”
Companies are taking sources told Reuters on January 16, as the US Other companies are also taking the sanc-
the sanctions treat prepares to slap stricter sanctions on the project. tions threat very seriously. Norway-based qual-
seriously. Washington is set to expand its sanctions ity assurance firm DNV GL said in early January
regime against the near-complete project within it would no longer provide pipeline integrity
weeks, after both houses of US Congress over- verification services for the pipeline, over fears
rode a Trump veto of a defence bill containing of incurring Washington’s wrath.
the measures. Current sanctions only target Nord Stream 2’s offshore section is around
those companies providing pipelaying vessels for 95% complete. Construction was halted in
Nord Stream 2, but the US wants to punish those December 2019 after the US imposed its first
providing technical certification and insurance, round of sanctions, prompting Allseas to leave
as well as other construction activities such as the project. But work resumed in German waters
surveying, trenching and rock replacement. last month and off Denmark on January 15, with
The US State Department earlier this month Russia now using its own pipelaying vessels for
warned European companies suspected of the job.
assisting at the project to pull out before it was While US says Nord Stream 2 is a threat to
too late. Zurich has extensive operations in the European energy security, Germany’s support
US, meaning that it is greatly exposed to asset has not wavered for the pipeline, which at full
seizures and other potential sanctions measures. capacity will pump 55bn cubic metres per year
It is one of around 20 insurers that is supporting of Siberian gas to the north German coast. Ger-
Nord Stream 2, according to Reuters. many’s northern state of Mecklenburg-Vor-
The insurer declined to comment on specific pommern is seeking to establish a foundation
customers, but it did tell the news agency that it to support the pipeline’s completion, following a
“has a comprehensive compliance framework in vote by the local parliament earlier this month.™

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