The US is urging European capitals to ease the impact of their ban on insuring Russian oil cargoes, claiming that this measure could cause global crude prices to skyrocket.
The EU and UK agreed to ban insurance on tankers carrying Russian oil at the end of May, in a strict sanction imposed in response to the war launched by Russia in Ukraine.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
As the Financial Times say, the EU has now put its ban into law, but the US is anxious that the measure could make it impossible for many oil tankers to transport Russian crude.
In fact, FT reports that the US is working on ways to ensure the ban does not drive crude prices higher, and find suggestions to enable cover for cargoes priced below an agreed cap or impose tariffs on oil imports do not have broad support in European capitals.
According to EU officials, G7-level talks discuss this topic, which will also be addressed at meetings of EU finance ministers.
In response to the measure, former president Dmitry Medvedev said that Russia will cover Russian oil tankers to ensure they are able to continue making deliveries, if they are unable to get insurance because of Western sanctions.
As he said “the issue of insurance procurement can be solved by means of a government assurance under the framework of multinational agreements with third countries.”
