Russia: This boss no longer insures Putin’s oil exports

Crucial step in sanctions against Russia.

the European Union has agreed in its sixth sanctions package, in cooperation with Britain, to a coordinated ban on the insurance of ships carrying Russian oil. This is reported byfinancial timeswith reference to circles of the EU Commission and British officials.

► This decision excludes Moscow from the Lloyd’s of London insurance market and therefore severely limits its ability to export crude oil.

For centuries, Lloyd’s has been at the center of the marine insurance industry. Preventing its members from securing Russian oil cargoes will put even more pressure on global commodity markets.

Lloyd’s CEO John Neal is thus taking one of the most decisive sanctioning steps against the Kremlin dictator. wladimir putin (69) on! Hardly any country in the world allows an uninsured oil tanker to enter its territorial waters. Lloyd’s has a monopoly on the marine insurance industry.

Lloyd's CEO John Neal Leads Russia's Oil Insurance BanFoto: Lloyd’s of London

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Lloyd’s CEO John Neal Leads Russia’s Oil Insurance BanPhoto: Lloyd’s of London

► Media: It’s getting tough for Russia’s oil exports. Presumably, they can only go to ports that already have cooperation with Russia or are controlled by the Kremlin. In recent weeks, Russian wheat exports have repeatedly entered the port of Latakia in Syria.

Insurance ban only after British approval

The EU decided on an embargo on most Russian oil supplies on Monday night. However, it was only through Britain’s involvement that the insurance ban could be initiated.

Marine insurance was a key part of the drafting of the (partial) EU oil ban, as insurers warned of dire economic consequences of cracking down on their sector, which is crucial to international trade.

Greece and Cyprus, which have large shipping sectors, appeared to agree only after the UK, and with it Lloyd’s, pledged to follow the EU’s lead, officials told the Financial Times.

The British government has not yet said anything about the plans. But an announcement is imminent, reports the Financial Times, that Britain will ban insurers from covering ships carrying Russian oil.

The London insurance market had already braced for sanctions to be extended to the shipping sector after Russian companies were stripped of aerospace insurance cover earlier this year.

► The biggest problem with the insurance ban that has now been decided: How do insurers know if there really is Russian oil on board the ships? Lloyd’s also sees this as the crux of the decision.

“The only complication is making sure it’s Russian oil in the first place,” a Lloyd’s official said. “It’s not the easiest task in the world, but it’s not impossible either.”

Imports of energy raw materials from Germany - Infographic

► Russia is the world’s third largest producer of crude oil and has so far found buyers for its oil, including China, India and Turkey, despite trade sanctions. However, Russian exports of refined products have decreased.

The increase in energy prices around the world has been one of the main factors behind the huge increase in inflation that has taken place around the world this year.


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