EU to cease Russia’s global oil trade by targeting insurance services
Category: #headlines  | By Nikita Chaurasia  | Date: 2022-05-05 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

EU to cease Russia’s global oil trade by targeting insurance services

Amid Russia’s invasion of Ukraine, the European Union plans to go ahead with import ban on the Russian crude oil by targeting insurers with a motive that could substantially impair Moscow’s ability to export its oil anywhere in the world.

As per credible sources, the bloc is suggesting to forbid Europe-centric firms and vessels from offering services such as insurance connected to the transportation of Russian products and oil across the world as part of their new sanction plan.

Apparently, while the terms are still under discussions amongst the member states, the tool is potentially powerful as 95 per cent of the global tanker accountability cover is arranged via a London-centric insurance company, International Group of P&I Clubs, that heeds European law.

In the absence of such cover, the Russian customers and the country will have to look for alternatives for risks including mishaps and oil spills at sea that can escalate into multi-billion-dollar claim.

Daniel Martin, Partner and Adviser to Shipowners, Traders, Brokers, and Insurers at HFW stated that the move will see insurers being very careful.

Daniel added that European Union has a lever as it holds an important position in insurance, and he expects its use to ensure that the sanctions are as multidimensional as possible.

According to reports, the cover from the International Group is a part of contracts for the transportation of most of the oil cargoes.

Furthermore, the International Group, also called as IG, offers reinsurance if claims surpass what the group’s 13 single members cover.

As per claims, Insurance is one of the major ways by which Europe and U.S. successfully limited oil exports of Iran.

Allegedly, if the move gets completely implemented, it will increase the stakes with Moscow. The insurance steps are EU’s top priority to cease imports of refined products and crude from Russia by the year end.

Source Credits: - https://www.bloombergquint.com/politics/eu-aims-to-target-russia-s-global-oil-sales-with-insurance-ban

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...

EasyJet sees a rise in bookings as customers plan their next vacations

EasyJet sees a rise in bookings as customers plan their next vacations

By Nikita Chaurasia

British multinational low-cost airline group, EasyJet, has reported a record surge in bookings for the month of January as people prioritized their travel plans for the coming year. The news comes as airlines world over start to show signs that they&...

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

By Nikita Chaurasia

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the ...