- Dupont set for Toulouse return after post-Olympic holiday
- French rugby bosses tighten discipline after nightmare Argentina tour
- Visitors to get rare view of Rome's Trevi Fountain
- Man City and Premier League both claim victory in legal case
- Deschamps delight as 'light back on' for Pogba after doping ban
- Biden, Harris urge Mideast peace on Oct. 7 anniversary
- Neeskens, tough midfielder in Cruyff's Ajax and Dutch teams
- UN warns world's water cycle becoming ever more erratic
- Oil prices extend gains on Mideast tensions, Wall Street retreats
- Ex-Dutch football star Johan Neeskens dies
- Man Utd battling to improve fortunes, says Evans
- What is microRNA? Nobel-winning discovery explained
- Masood, Abdullah centuries lift Pakistan to 328-4 in first England Test
- Hurricane Milton strengthens fast, threatens Mexico, Florida
- Tunisia's President Saied set for landslide election win
- Barca hoping to return to Camp Nou 'by end of year'
- Trump to open second golf course at Scotland resort in summer 2025
- Super-sub Jhon Duran rewarded with new Aston Villa deal
- US duo win Nobel for gene regulation breakthrough
- Masood hits first ton for four years to power Pakistan to 233-1
- Fritz wins delayed match to reach Shanghai Masters third round
- Naomi Osaka pulls out of Japan Open with back injury
- China to flesh out economic stimulus plans after bumper rally
- Artist Marina Abramovic hopes first China show offers tech respite
- Pakistan 122-1 at lunch in first England Test
- Kazakhs approve plan for first nuclear power plant
- World marks anniversary of Oct. 7 attack on Israel
- 'Second family': tennis stars hunt winning formula with new coaches
- Philippines, South Korea agree to deepen maritime cooperation
- Mexico mayor murdered days after taking office
- Sardinia's sheep farmers battle bluetongue as climate warms
- Japan govt admits doctoring 'untidy' cabinet photo
- Israel marks first anniversary of Hamas's October 7 attack
- Darvish tames Ohtani as Padres thrash Dodgers
- Asian markets track Wall St rally on jobs data
- Family affair as LeBron, Bronny James make Lakers bow
- Cancer, cardiovascular drugs tipped for Nobel as prize week opens
- As Great Salt Lake dries, Utah Republicans pardon Trump climate skepticism
- Amazon activist warns of 'critical situation' ahead of UN forum
- Mourners pay tribute to latest victims of deadly Channel crossing
- Phillies win thriller to level Mets series
- Yu bags first PGA Tour win with playoff win
- PSG held by Nice to leave Monaco clear at top of Ligue 1
- Lewandowski treble for leaders Barca as Atletico held
- Fresh Israeli strikes hit south Beirut
- Sucic stunner earns Real Sociedad draw against Atletico
- PSG draw with Nice, fail to reclaim top spot in Ligue 1
- Gudmundsson downs AC Milan after De Gea's penalty heroics for Fiorentina
- 'Yes' vote prevails in Kazakhstan nuclear plant vote: TV
- 'Difficult day': Oct 7 commemorations begin with festival memorial
RBGPF | -1.97% | 58.94 | $ | |
RYCEF | -1.45% | 6.88 | $ | |
CMSC | -0.61% | 24.55 | $ | |
RIO | -0.27% | 69.51 | $ | |
SCS | -0.57% | 12.897 | $ | |
AZN | -0.51% | 77.08 | $ | |
GSK | 0.08% | 38.85 | $ | |
NGG | -1.22% | 65.7 | $ | |
RELX | -0.83% | 45.91 | $ | |
VOD | 0.23% | 9.682 | $ | |
BTI | -0.23% | 35.21 | $ | |
CMSD | -0.21% | 24.76 | $ | |
BCC | 0.45% | 139.53 | $ | |
BCE | -0.58% | 33.514 | $ | |
BP | 0.72% | 33.12 | $ | |
JRI | -0.23% | 13.25 | $ |
EU insurance ban targets Russian oil exports
An EU ban on insuring ships transporting Russian oil could potentially hurt Moscow more than its embargo on the nation's crude, analysts say.
The European Union recently unveiled the insurance ban in a sixth set of economic sanctions aimed at punishing Russia over its invasion of Ukraine.
In a further knock, G7 leaders are seeking a price cap for Russian oil to further hurt Kremlin revenues.
The EU insurance and reinsurance ban, covering all maritime transportation of Russian oil, comes as Moscow seeks to ramp up sales to China and India to help offset the embargo.
- 'Further reaching than embargo' -
The insurance ban "would have further-reaching consequences for the oil market than the EU oil embargo", noted Commerzbank analyst Carsten Fritsch.
Companies will no longer be permitted to transport oil from Russia by sea, or to insure such shipments.
EU insurers have until the end of this year to implement the ban, while those in Britain are expected to follow suit.
"There is going to be an impact and there is going to be a pricing impact," said Marcus Baker, international head of marine at US broker Marsh.
A similar ban was used in 2012 when the EU prohibited European insurers and reinsurers from covering vessels carrying Iranian oil.
The bloc had also slapped an embargo on the purchase of Iranian crude as part of sanctions against Tehran's controversial nuclear programme.
Commercial ship operators require insurance for the vessel, its cargo and for protection and indemnity (P&I) covering events such as war and environmental damage.
Mathieu Berrurier, managing director of marine insurance broker Eyssautier-Verlingue, told AFP that vast amounts of cash were required for potential payouts caused by such disasters.
This results in insurers forming P&I clubs that "are able to offer guarantees equal to the risks involved in" events including "a major oil spill or "collision with an oceanliner", said Berrurier.
"Colossal amounts are needed," he stressed, adding that such disasters can potentially cost "billions of dollars".
Russia's former president Dmitry Medvedev, who is deputy head of the country's security council, has hinted that Moscow could get around the ban by providing state guarantees to cover oil exports.
That could allow Russia to self-insure and circumvent EU sanctions, he insisted.
"That is true to an extent," said analyst Livia Gallarati at consultancy Energy Aspects.
But with as much as 95 percent of the P&I insurance market handled by EU and UK-based insurers, according to experts, it will be difficult for Russia to completely get around the ban.
"The market is so heavily entwined in Europe (that it) is going to be almost impossible" to escape the impact of the ban, an oil shipping executive told AFP on condition of anonymity.
"There is not a very mature and deep alternative insurance market out there," the executive noted.
- India 'helping Russia' -
It emerged late last week that India has reportedly stepped in to offer certification services for some tankers carrying Russian crude.
That threw the spotlight on this week's G7 summit, which focused on more co-ordinated financial action against Russia.
"India is helping Russia to continue selling its oil despite the West's sanctions," said Commerzbank analyst Fritsch.
He added that India has provided safety certification for more than 80 ships belonging to a Dubai-based subsidiary of the state Russian shipping company Sovcomflot.
G7 leaders, meeting in Germany on Monday and Tuesday, condemned Russia's Ukraine invasion as "illegal and unjustifiable".
"We reemphasise our condemnation of Russia's illegal and unjustifiable war of aggression against Ukraine," they said in their draft final statement.
The communique was issued after the G7 held talks with Indian Prime Minister Narendra Modi, as well as the leaders of Argentina, Indonesia, Senegal, South Africa and Ukraine.
A.F.Rosado--PC