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Posts Tagged ‘Lloyds’

Jeffrey Brodsky, a journalist who traveled to all four Nord Stream blast sites, shared Nord Stream AG’s response (attached) to the 30 Sept. court filing by the insurers.

Particularly noteworthy is Nord Stream’s response to the insurers’ claim (par. 22.2 (a) of their filing) that the pipeline damage was the result of “the conflict between Russia and Ukraine.” In par. 13.1 of their response (attached), Nord Stream called the insurers’ assertion “embarrassing for want of particularity.” (clever wording that may prove useful in the future 😉)

Brodsky’s observations on the Nord Stream filing:

  • Nord Stream AG calls the insurers (Lloyd’s and Arch) failure to provide evidence for the country that blew up the pipelines “embarrassing.” (See above comment.)
  • Nord Stream argues that the insurers still must pay even if the sabotage was an act of war. This aligns with what legal scholar Said Mahmoudi told Brodsky.
  • Mahmoudi: “The defendants’ argument is prima facie irrelevant if one cannot prove that the damage is caused by a named government that has been directly involved in a war in the area. The burden of proof in this case is…on the defendant.”
  • Mahmoudi: “Even if the sabotage is an act of terrorism, the author of the act can be a state or a private entity.”
  • Mahmoudi: “If a private entity, the insurance company, is the only source for the compensation; if a state is responsible for the terrorist act, it is the insurance company & that state that have a legal obligation to compensate for the damage.”

Related comment by Erik Andersson: Nord Stream AG has consistently claimed they should receive compensation regardless of whether or not a government was responsible for the sabotage. Nord Stream AG does not seem interested in providing an alternative to Lloyds’ claim that Ukraine did this as an act of war. (That horse might be too big to ride 😉)

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Swedish engineer Erik Andersson has personally investigated the September 2022 sabotage of the Nord Stream pipelines. He is perhaps the most informed independent investigator of the incident and the associated legal and political drama.

Andersson provided an updated defense document filed by the pipelines’ insurers (attached) and posted his observations on X. His X comments are consolidated below.

  • Nord Stream insurers Lloyds & Arch just filed an amended defense document (attached) which reveals technical details confirming a fifth Nord Stream bomb, which failed to break the NS1B line, placed just 90 meters from the successful bomb on NS1 line A.
  • Lloyds & Arch intend to prove in court that the government of Ukraine ordered the destruction.
  • The insurers have access to classified information in the criminal investigation which not even the victims have had up to now.
  • The insurers doubled down on their previous claim that the destruction was an act of war (and thus they are not liable). They all but say it was ordered by the Ukrainian government, and will rely on “expert evidence” of this.
  • The locations of the northern Nord Stream bombs are marked on the nautical chart (pasted below). The previously known bombs have orange markers and the new bomb we learned about in the NS vs Lloyds filing is marked red.
  • I (Andersson) have repeatedly said that I dismissed Seymour Hersh claim of 8 bombs after my expedition, and have assumed there were exactly four bombs. This has now been proven false, and I think that we again have to account for the possibility that there were perhaps 8 bombs, and that Sy Hersh is perhaps right in his claim that “the Americans sped back to the crime scene to remove the unexploded bombs.”
  • Andersson’s personal view is that it doesn’t matter much if Team USA trusted and protected the Ukrainian sailboat crew so they could place the bombs, or if they just waited for the sailboat cover operation to finish before detonating the bombs they had placed there by other means (making sure they didn’t do anything that couldn’t have been done from a sailboat).
  • The presence of American, Danish and Swedish warships in the area, with all their surveillance capabilities, including the underwater surveillance, makes it a very hard sell that the Ukrainians did this alone without American participation.
  • American warships were also present at the crime scene when it was closed off (justified by an erroneous interpretation of international law) and cleaned up by the Swedish investigation. If any materials were found which contradicted the sailboat narrative, these materials could have been removed.
  • It’s impossible to trust the investigations when (1) the crime scene was illegally blocked & cleaned with US military protection, (2) international investigation was blocked, and (3) the Swedish and Danish investigations were closed with a bogus justification contradicting the premise of “jurisdiction” which was used to seize control of all information in the first place. (Very interesting point about Sweden and Denmark. After 16+ months of investigation, they both punted. Sweden suddenly didn’t have jurisdiction and Denmark decided they didn’t have sufficient grounds to pursue a criminal case.)

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Nord Stream AG has responded to their insurers’ a goverment did it, so we don’t have to pay” defense. Nord Stream’s full response, courtesy of Swedish engineer Erik Andersson, a leader in seeking the truth about the the pipeline sabotage, is linked.

Key excerpts from the Nord Stream AG filing (p.5):

(a) On their proper construction, in the context of Exclusion 2.i as a whole, the words “destruction of or damage to property by or under the order of any government or public or local authority” relate only to destruction or damage that arises out of or is related to the confiscation, nationalisation or requisition of therelevant property (and/or attempts thereat). In the premises, those words do not apply to the Damage.

(b) Alternatively, in the event that the Defendants establish that the Damage does constitute destruction of or damage to property by or under the order of any government, then it is therefore covered by the Deliberate Damage clause because it would have been “loss, damage, liability, cost or expense caused or inflicted by order of any governmental or regulatory body or agency” and Exclusion 2(i) to Section I does not apply: paragraphs 8 and 9.2 above are repeated.

If the insurers contend that one or more governments were responsible, shouldn’t they have to identify the government(s)? That would be nice. However, Erik doesn’t think the Nord Stream AG response puts the insurers in that politically difficult position. I agree. This case is about getting the insurers to pay for the damages, not identifying the responsible parties, something that the Swedes, Danes, and Germans have shied away from.

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Our last Nord Stream pipeline post discussed the Nord Stream AG suit to recover damage costs from insurers Lloyd’s and Arch.

In a court document (excerpt below) obtained by Swedish engineer Erik Andersson, Lloyd’s and Arch assert that the damage was inflicted by, or under order of, a government , and therefore the insurers are not liable.

Given that the suspect governments have denied responsibility, shouldn’t the insurers have to prove that a government did it, and identify the government? That is what Nord Stream AG is asserting in their filing (except below).

Long, but interesting video with Erik Andersson:

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Pictured: pig for cleaning gas pipelines. Will Nord Stream’s suit against the insurers unplug investigation findings?

Nord Stream AG has sued insurers Lloyds and Arch in the English High Court for failing to pay for pipeline damage incurred during the Sept. 2022 Baltic Sea explosions. The estimated pipeline repair costs range from €1.2 to €1.35 billion, and Nord Stream is seeking €400 million from the insurers.

Could this litigation help us learn more about the findings of the official Nord Stream investigations? After 17 months of investigation, Denmark recently concluded that “there are not sufficient grounds to pursue a criminal case in Denmark.” Only nineteen days before Sweden had announced that “Swedish jurisdiction does not apply and that the investigation therefore should be closed.” These weak announcements at the end of lengthy investigations seem too convenient, and may lend credence to Hersh’s Nord Stream account or a recent variation that implicates the UK. Germany is presumably still investigating, and it remains to be seen whether they will release findings.

Could the parties in the Nord Stream case pursue documents or testimony from the Swedish, Danish, or German investigation teams? Both sides in this case, Nord Stream AG and the insurers, would benefit from details that could help identify the responsible parties.

It’s more than a little hypocritical for Western governments and their NGO partners to rail against offshore oil and gas operations while quietly accepting (without investigation) the economic and environmental consequences of the Nord Stream sabotage. Compare the Nord Stream methane emissions with those associated with Gulf of Mexico operations.

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