Bloomberg and Danwatch investigation has revealed a significant shift in Russian oil tanker insurance coverage, with Moscow-based providers backed by a sanctioned state reinsurer increasingly stepping in amid western sanctions.
Before Russia’s full-scale invasion of Ukraine, western firms that are part of the International Group of Protection & Indemnity Clubs provided the majority of Russian oil tanker insurance. These companies remain in the trade but have been joined by new entrants, particularly Russian firms, as G-7 countries can only cover Russian oil if they have written assurances that the cargoes are purchased below certain price caps.
According to Bloomberg, Estonian authorities examined insurance papers of about 150 oil tankers carrying Russian petroleum in July and August 2024, finding that 20% to 25% had coverage from Russian firms.
The investigation identified three main Moscow-based insurance providers – Ingosstrakh, AlfaStrakhovanie, and Sogaz – being backstopped by the Russian National Reinsurance Co. (RNRC), which is under US, UK, and EU sanctions. Additionally, insurers from Cameroon and Kyrgyzstan were found covering at least two tankers each.
Denmark’s Business Minister Morten Bødskov expressed deep concern about the “dubious insurances” of ships passing through Danish straits, which handle about half a trillion dollars in trade annually and roughly 7% of the world’s seaborne oil, according to data from Clarkson Research Services Ltd.
Bloomberg reports that Ingosstrakh has emerged as the primary insurer for tankers transporting Russian crude to India, covering shipments that exceed the Western price cap, according to a source familiar with the matter.
The investigation identified Ingosstrakh and Sogaz as the top insurers for tankers transporting oil from Russia’s Black Sea port of Novorossiysk through Türkiye’s Bosphorus and Dardanelles straits, according to a source with direct knowledge of the matter.
Related:
- UK sanctions Russia’s shadow fleet of tankers
- Politico: Marine life at risk worldwide as Russia’s shadow fleet spills oil, bypassing sanctions
- Ukraine’s Foreign Minister calls on Europe to fight Russia’s shadow fleet of tankers
- European parts still reaching Russian ships despite sanctions, BBC finds
- Exports of Russian oil via shadow fleet nearly doubled in past year
- Bloomberg: Türkiye seeks BRICS membership, expanding alliances beyond West
- Denmark weighs blocking Russian oil tankers from Baltic passage
