Western companies have continued to insure Russian oil tankers despite concerns they might be violating the $60 per barrel price cap implemented by Ukraine's Western allies, Reuters reported on Aug. 8.
The EU, the U.S., and the Group of Seven (G7) countries imposed a $60-per-barrel price cap on Russian seaborne oil in December 2022 as part of the effort to cut Moscow's fossil fuel revenue.
While the measure found success at first, Russia soon began to dodge the effects by using a "shadow fleet" of uninsured tankers. Kyiv's partners have been intensifying their efforts to enforce the cap. One of the methods has been try and prevent Western insurers and companies from transporting Russian oil traded above the cap.
Russia has also prohibited its oil to be traded below the cap.
According to data seen by Reuters, five Western insurance companies have continued providing services to Russian oil tankers, despite concerns that most Russian oil is still being traded above the cap.
Insurance companies are not expected to verify that oil is being transported below the cap, but are required by Western enforcement agencies to request "attestations" from traders.
The International Group (IG) of P&I Clubs, which provides insurance to the vast majority of the world's oil tankers, said the "process was flawed" and "risked exposing its members to breaches of the price cap."
Some of the companies that Reuters contacted said they would terminate the contracts with the tankers if it was revealed that they were violating the price cap. Others did not respond to requests for comment.
Martin Vladimirov
