Japanese companies will continue to insure ships in Russian waters against war damage until March

The largest Japanese insurance companies have decided to continue insuring ships against war damage in Russian waters until at least March 2023, sources said. NHK. Japanese media previously reported that the companies would not provide the service from the beginning of the year, which could lead to problems with LNG supplies from the Sakhalin-2 project.

Despite the continuation of the provision of services, the amount of insurance compensation in 2023 will decrease. As noted by NHK, it is unclear whether insurance will continue after March.

Since the beginning of the year, Tokio Marine & Nichido Fire Insurance Co, Sompo Japan Insurance Co and Mitsui Sumitomo Insurance Co planned to refuse insurance, the companies sent letters to customers. It was argued that this was due to the refusal of foreign firms to enter into reinsurance agreements.

Sakhalin-2 provides about 9% of Japan’s LNG consumption. Japanese companies, on the recommendations of the government, did not withdraw from the project, as American ExxonMobil did. At the end of August, supplies LNG from Russia to Japan increased by 211%.

Leonid Uvarchev