Western Insurers Provide Cover For Russian Oil Exports

A group of Western insurers has provided cover for tankers carrying Russian crude, keeping its oil flowing after many in the trade sector withdrew for fear of breaching the rules of a G7 price cap, data from traders and shippers show, Jonathan Saul and Gleb Stolyarov reported for Reuters.

The extent of the ongoing provision by Western insurers in covering specific Russian oil deals has not been previously reported since the cap was imposed in 2022 following the war in Ukraine.

The data seen by Reuters showed that five insurers, including American Club, Luxembourg-headquartered West of England, and Norway's Gard, provided cover for 10 tankers that sailed from Russia to Asia this year.

American Club and West of England provided insurance for two vessels — the Gioiosa and the Orion I — that made similar voyages in early 2024.

Both vessels took on board crude from the state-owned Russian oil company Rosneft in Russia's Baltic region and sailed to China, the data showed. American Club said the ship, which flew the Panama flag, was on its cover list. Norway's Gard, which data showed covered a separate vessel, declined to comment, like West.

The three non-profit mutuals, which insure ships against oil pollution, injury, and loss of life, say they are providing a service to their members.

The extent of the ongoing provision by Western insurers in covering specific Russian oil deals has not been previously reported since the cap was imposed in 2022 following the war in Ukraine.

The cap, imposed by the Group of Seven industrialized nations and their allies to curb Moscow's ability to finance the war, only allows Western insurers and ships to participate in the Russian oil trade if the oil is sold below $60 a barrel.