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

PM Liz Truss to launch comprehensive review of UK’s visa policy

PM Liz Truss to launch comprehensive review of UK’s visa policy

By Nikita Chaurasia

Newly appointed Prime Minister Liz Truss is considering doing a complete review of Britain's visa system, as the nation struggles with severe labor shortages in vital industries. Business leaders across the UK have reportedly praised the decision...

UAE: Entrepreneurs and investors can benefit from visa reforms

UAE: Entrepreneurs and investors can benefit from visa reforms

By Nikita Chaurasia

The visa and business reforms by the UAE will open new prospects for investors, entrepreneurs, IT specialists, job seekers, and tourists, according to credible sources. This will reportedly benefit the region’s economic growth. Business Link...

Flipkart introduces new tech and design upgrades ahead of holiday season

Flipkart introduces new tech and design upgrades ahead of holiday season

By Nikita Chaurasia

Flipkart, India's indigenous online marketplace, is reportedly offering customers an improved shopping experience on its widely popular app. To better serve various client groups that are exploring e-commerce during the holiday season, Flipkar...