Russia Insurer Ingosstrakh Has No Plans to Fill Insurance Gap Caused by Sanctions

Russian insurer Ingosstrakh said on Monday it has no plans to offer policies to new clients who may lose coverage from international insurers after restrictions against Russian oil came into force on Dec. 5.

The European Union banned all seaborne Russian crude imports from Dec. 5, with a fuel import ban to follow in February.

It also banned companies and individuals in the bloc from providing financing, brokerage, shipping and insurance services to ship Russian oil elsewhere if the crude was bought above a price cap of $60 a barrel that came into effect on Monday.

Insurance-Related Oil Tanker Backlog Starts to Clear in Turkey’s Vital Shipping Strait

Also, Turkey’s maritime authority said on Thursday it would continue to block the passage of oil tankers without appropriate insurance letters, adding that the insurance checks on ships in its waters was a routine procedure.

“We are not willing and will not provide short-term P&I (Protection and Indemnity) coverage for vessels caught up by the new Turkish regulations at the mouth of the Bosphorus,” Ingosstrakh said.

It also said that the company was interested in “long-term relations with reputable clients that operate in full compliance with the applicable legislation.”

The Turkish measure in force since the start of the month has caused shipping delays. It requires vessels to provide proof of insurance covering the duration of their transit through the Bosphorus Strait or when calling at Turkish ports.

Since the regulations came into effect, one tanker covered by Ingosstrakh was able to sail after a letter was submitted.

(Reporting by Vladimir Soldatkin; editing by Louise Heavens and Lisa Shumaker)