EU insurance ban targets Russian oil exports
[ad_1]
Issued by: Changed:
London (AFP) – The EU’s ban on insuring ships carrying Russian oil could potentially hurt Moscow more than its embargo on the country’s oil, analysts say.
The European Union recently issued a ban on insurance under the sixth set of economic sanctions aimed at punishing Russia for its invasion of Ukraine.
In the future, G7 leaders are pushing for restrictions on Russian oil prices to further damage the Kremlin’s revenue.
The EU’s ban on insurance and reinsurance, which covers all maritime transportation of Russian oil, comes at a time when Moscow is seeking to increase sales to China and India to help offset the embargo.
“Further than the embargo”
The insurance ban would “have more significant implications for the oil market than the EU oil embargo,” said Commerzbank analyst Carsten Fritsch.
Companies will no longer be allowed to transport oil from Russia by sea or insure such supplies.
EU insurers are expected to enforce the ban by the end of this year, and Britain is expected to follow suit.
“It’s going to be an impact, and it’s going to be an impact on prices,” said Marcus Baker, head of the international shipping division of American broker Marsh.
A similar ban was used in 2012, when the EU banned European insurers and reinsurers from covering vessels carrying Iranian oil.
The bloc has also imposed an embargo on the purchase of Iranian oil as part of sanctions against Tehran’s controversial nuclear program.
Operators of commercial vessels require insurance of the vessel, its cargo, as well as protection and compensation (P&I), which cover events such as war and environmental damage.
Mathieu Berrie, managing director of marine insurance broker Eyssautier-Verlingue, told AFP that huge amounts of cash were needed for potential payments caused by such disasters.
As a result, insurers are creating P&I clubs that are “able to offer guarantees equal to the risks” of events, including a “major oil spill or” collision with an ocean liner, “Berrie said.
“Huge sums are needed,” he said, adding that such disasters could potentially cost “billions of dollars.”
Former Russian President Dmitry Medvedev, who is the country’s deputy head of the Security Council, has hinted that Moscow could circumvent the ban by providing state guarantees to cover oil exports.
This could allow Russia to insure itself and circumvent EU sanctions, he insisted.
“This is to some extent true,” said analyst Livia Galarati of the consulting firm Energy Aspects.
But, according to experts, given that 95 percent of the P&I insurance market is occupied by insurers from the EU and the UK, Russia will find it difficult to completely circumvent the ban.
“The market is so heavily intertwined in Europe (that it is) it will be almost impossible,” to avoid the impact of the ban, the AFP executive told AFP on condition of anonymity.
“There is not a very mature and deep market of alternative insurance,” said the head.
India “helps Russia”
Late last week, it became known that India had reportedly intervened to offer certification services to some tankers carrying Russian oil.
This drew attention to this week’s G7 summit, which focused on more coordinated financial action against Russia.
“India is helping Russia continue to sell its oil despite Western sanctions,” said Commerzbank analyst Fritsch.
He added that India has provided safety certification for more than 80 vessels owned by a subsidiary of the state-owned Russian shipping company Sovcomflot in Dubai.
G7 leaders at a meeting in Germany on Monday and Tuesday condemned Russia’s invasion of Ukraine as “illegal and unjustified.”
“We reiterate our condemnation of Russia’s illegal and unjustified aggressive war against Ukraine,” the draft final statement said.
The communiqué was issued after G7 talks with Indian Prime Minister Narendra Modi, as well as with the leaders of Argentina, Indonesia, Senegal, South Africa and Ukraine.
© 2022 AFP
[ad_2]
Source link
Amazing
Hello th
Hey
Hi
Not good to hear
156
So unfair
I hope they’re resolved soon enough.
Wow that’s so crazy
That’s bad
Excellent
They should find a way of resolving it
Ok
Good
Thanks
K
Yeah
Ok
Tanku
So badly
They try and make peace
Not a good news
A
Good
B
C
D
How How 3
F
Nice info
Thanks for the news
Good
Hi
Good
Ok
Good
Russia
Owk good to hear
So bad to hear
Great
Nice
Cool
Alright
That’s true it’s going to affect the oil market
Hmmmm interesting
Good
Good
Wow
Ok
T
Good
Good
Wow
Yeah
Great
Perfect
Nice
Good
Good to know
Nice
Good
Fine
Wow
Tyde or dies
Great
Nice one
This is good
Ok
Vest
Great
Good one
Oil market
Great
Nice
One
Sweet
Very well
Greatly
Ok
Great
Wazt
Good
A hard knock on Russia
Shane
Potentially
Great
Brilliant one
Good
Nice
Dt
Thanks
G
Good
K
Economic sanctions
I’m coming for this
We are desperate for that
Ok
Hi
Wow
C
CCrazy
Good one
A
Wow
Dope
Ok
Otida
Good
Interesting
Bot
Both
Not easy
Good
Good
nice one
Not bad
😉😉
Life
Like
Living
Okay
Okay
Grear
Kk
Good
Facts
Very Good
Didn’t
More
Let see how it goes
Ok
Will it Favour everyone?
Thanks for the information
Nice
Russian Oil…
Not bad
Fine
Great
Good
Awesome
Great
Nice one
Surely
All these will soon be over!
Great
Okay
Too bad
Nice
Im
When will the settle this?
Okay
Nice
Nice one
Wow
WOW
Awesome
Nice
No
Okay
Nice
Ok
Okay
Hurt
Restrictions
nice
GOOD TO KNOW THIS
Very informative and interesting
Okay
Hello kitty
Good
Ok
How
How Great
Good
Good update
Good one
Good
Very informative
very bad
Hmmmm
Worldwide revolution
Yes oo
Nice one
Thanks
Great
Nice
Gg
Good
Thanks
Oyana
Very nice
Very good
Kk
Incredible
Nice
Awesome
Interesting information