Russian Insurer Says US Sanctions Against it Increase Risk of Environmental Disaster

Russian insurance company Ingosstrakh said on Friday [Jan. 10] that U.S. sanctions against it would increase the risk of environmental disasters.

The Biden administration on Friday imposed its broadest package of sanctions yet targeting Russia’s oil and gas revenues in an attempt to give Kyiv and the incoming administration of Donald Trump leverage to reach a deal for peace in Ukraine.

The sanctions were imposed on two of Russia’s maritime insurance providers: Ingosstrakh and Alphastrakhovanie.

“Removing Ingosstrakh from the market creates a vacuum that will inevitably be filled by fly-by-night insurers lacking the capacity or intent to ensure compliance or pay claims. This dramatically heightens the risk of environmental disasters, such as oil spills,” the company told Reuters via email when asked for comment.

Ingosstrakh is operating normally and fulfilling all its obligations to clients and partners, the company added in the email.

Alphastrakhovanie did not immediately respond to a request for a comment.

Ingosstrakh was added to the list of designated Russian entities by the UK government’s sanctions enforcement arm, OFSI, in June 2024.

(Reporting by Reuters; editing by Matthew Lewis)

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