UK and the European Union have agreed on a coordinated ban on insurance of ships carrying russian oil, the Financial Times reported, citing sources.
The decision will cut off russian oil exporters from Lloyd's market and the international P&L Clubs, which provide about 95% of global tanker insurance coverage. Lack of insurance will lead to shipowners refusing to provide ships for such transport.
Imports of oil to the EU by sea will be banned under the sixth sanctions package, but russia will still be able to supply it to Asia.
Last week, Bloomberg wrote that buyers of russian oil in Asia are forced to go to fiction to maintain supply flows. This is due to the fact that an increasing number of shipowners are avoiding oil from russia, so as not to face the potential consequences of sanctions.
The number of shipowners and insurers willing to serve cargo from eastern and western russia is declining. This has created a logistical problem for manufacturers and buyers, as they work with fewer tankers and have to consider how best to use existing types of ships.