The marine insurance industry in London now considers all waters in and around Russia as high-risk zones, making it more expensive and difficult to trade with the warring nation and increasing pressure on the Russian economy.
The influential marine insurance market in London has added all Russian waters to its list of high-risk areas as a result of the war in Ukraine. This will lead to higher insurance premiums for the part of the shipping industry that still trades with Russia, the news agency Reuters reported.
The expansion of the zone, which on Monday was rated high risk for merchant ships and prone to war, piracy, terrorism, and related hazards, will mean ships must notify insurers when entering ports and pay an additional $7,000 in premiums.
The guidance of the Joint Warfare Committee, made up of union members from the Lloyd’s Market Association and representatives from the London insurance market, is being closely followed.
Last month, JWC added Ukrainian and Russian waters around the Black and Azov Seas to its high-risk areas, as well as waters close to Romania and Georgia.
Meanwhile, a marine insurance source speaking on condition of anonymity said Monday’s advice was unexpected and would “increase the complexity of trade with Russia”.