RUSSIA is seeking to increase the recognition of Russian maritime cargo insurance to allow it to ship oil and related products abroad in the face of Western sanctions, reports Reuters.
Western sanctions imposed are in response to Russia’s invasion of Ukraine and have restricted Russia’s ability to secure costly liability insurance for its ships.
Russian deputy transport minister Alexander Poshivay acknowledged the challenges faced by Russian shippers.
Besides a lack of access to insurance services, they also had to deal with the non-recognition of certificates issued by Russian insurers and the Russian National Reinsurance Company because Lloyd’s syndicates declared Russian waters a war risk zone.
The EU and Group of Seven governments have agreed on a price cap of US$60 a barrel for Russian seaborne crude oil to restrict Russia’s ability to finance its campaign in Ukraine.
The primary tool to enforce it would be prohibiting shipping and insurance companies from handling cargoes of Russian crude around the globe unless they were sold for less than the cap set.
Mr Poshivay declared that Russian state-flagged vessels being denied insurance by Western companies were being insured with Russian insurance companies.
Mr Poshivay stated that Turkey recognized Russian maritime cargo insurance, and India and China recognized most Russian insurance.
‘The issue (of recognition of Russian insurance) is to be worked out with the whole world,’ said Mr Poshivay.
