In Russia, they can create a company to insure sea transportation of oil

In the event of a ban on shipping insurance in Russia, a domestic company could be created to insure tankers, said Nikolai Shulginov, head of the RF Ministry of Energy. According to him, cooperation with insurance companies from “friendly” countries is also being considered.

“We are exploring the possibility of using a number of local insurance companies from friendly countries. Another option is the creation of a new insurance company, but then mutual recognition of this organization by the countries is needed,” Mr. Shulginov said in an interview with TASS.

The G7 countries have been discussing setting cap prices for Russian oil since May. According to this mechanism, in order to issue licenses for transportation by sea, as well as insurance for the transportation of Russian oil, it will be necessary to disclose the details of the transaction. If the transaction contains a price that exceeds the established threshold, then permission will not be issued.

According to Bloomberg, the US, the EU and the UK together provide insurance for 90% of Russian oil shipments worldwide. According to the agency, the ban on insurance of Russian energy carriers will lead to a sharp jump in prices for them.

Read more about possible restrictions in the material “Oil and gas covered ceilings”.

Anastasia Larina