(Reuters) – The world's largest group of shipping insurers will not insure ships involved in the Russian-led gas project lines Nord Stream 2 and TurkStream due to the threat of US sanctions.
Associations belonging to the International Group of P&I Clubs, including the Shipowners' Club and the London P&I Club, said in a circular on Monday that they would not cover "any activity involving or relating to the Nord Stream 2 or TurkStream construction projects" . "
The circular said members "were strongly urged to assess and mitigate the risks of concluding contracts with Nord Stream 2 or TurkStream construction projects and to exercise the utmost care to avoid exposure to sanctions or enforcement measures."
The international group of P&I clubs represents the world's 1
Under the leadership of Russia's Gazprom, the Nord Stream 2 pipeline project is worth $ 11 billion to double the capacity of the existing Nord Stream 1 link. more than 90% finished and planned to start operating next year.
US President Donald Trump's administration has sought to limit the Kremlin's economic leverage over Europe and Turkey and has warned investors in the two natural gas pipelines could face sanctions.
Former German Chancellor Gerhard Schroeder is chairman of Nord Stream's shareholders' committee. Gazprom owns 51% of the shares together with the German energy companies E.ON and Wintershall Dea, Engie from France and the Dutch company Gasunie.
German Chancellor Angela Merkel has in recent weeks met demands to stop Nord Stream 2 in response to the suspected poisoning of Russian opposition politician Alexei Navalny in Siberia last month.
The Kremlin has said that the commercial project is beneficial to both Russia and European countries and that it should not be linked to the Navalny case.
TurkStream, which stretches 580 km across the Black Sea to Turkey, began work this year. Catalog