Malaysian Palm Oil Council Russia's Post

Russia without water

All Russian waters have been added to the list of high military risk areas, which dramatically increases the cost of insuring ships operating in them. The decision was made by the Joint War Committee (JWC), which includes syndicate members from the Lloyd's Market Association (LMA) and representatives of the London insurance market. It directly affects underwriters' considerations for premiums.

Back in mid-February, the JWC included the Russian and Ukrainian waters of the Black and Azov Seas in the list of potential military zones, and in March expanded it to the entire Black and Azov Sea. The latest decision includes the entire territory of the Russian Federation in the list of zones where the risks of military, piracy and terrorist threats are high.

Now shipowners planning voyages to Russian ports must notify ship hull insurers of this. At the same time, the insurer may completely refuse to insure the flight or increase the price of insurance coverage, up to + 7% of the value of the vessel for a weekly flight.  Sources reported paying up to $500,000 in additional war risk premium for a single Black Sea cargo.

There will be an increase in logistical pressure on Russia, foreign trade for it will become even more difficult. The country relies on its Baltic and Black Sea ports for oil and grain exports, which generate significant foreign exchange earnings. Other terminals, such as Kozmino in Asia, are essential for Russian exports to the region.


It is already difficult to find ship owners willing to call at any Russian ports because of the high risks. The Iron Curtain is getting heavier. His keys were lost.
By: via Malaysian Palm Oil Council Russia