Russia could create its own company to provide insurance services for vessels carrying the country’s crude abroad, according to Energy Minister Nikolay Shulginov, as quoted by TASS.
“We are exploring various possibilities, including using a number of local insurance companies from friendly nations,” Shulginov told the news agency on the sidelines of the 7th annual Eastern Economic Forum in Vladivostok.
He added that establishing a new insurance company in Russia is also an option, but it would have to involve mutual recognition from other nations.
Last week, the Financial Times reported that the EU and Britain agreed to introduce a coordinated ban on providing insurance for Russian ships – but London, home to global insurance major Lloyd’s, decided to postpone the drastic step. The UK had already prohibited insurance for tankers that carry Russian oil to the country, but the measure will come into effect in 2023.
The Group of Seven (G7) nations (the US, UK, Canada, Germany, France, Italy, and Japan) agreed to set a price ceiling for Russian crude to undercut the country’s revenue from oil exports, while maintaining energy flows to the West without spikes in prices. The measure will be enforced by banning services such as insurance and financing for ships transporting Russian crude above an agreed price level.
Russia has said it will respond to any price caps on its oil by only shipping crude to countries that do not implement the measure.
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