UK firms insured over 120 billion euros worth of Russian oil, with a former Cabinet minister calling on the insurance industry to reflect on its obligations, OilPrice.com reports.
According to the Centre for Research on Energy and Clean Air (CREA), the United Kingdom insured €120.6 billion worth of Russian oil between the outbreak of the war in Ukraine and the end of 2023. The analysis focused on the months from March 2022 to November 2023. The company noted that transporting Russian oil or insuring it is not against the law if it is sold at less than $60 per barrel.
CREA reported that 33 per cent of all Russian oil was shipped by tankers insured in the UK. Of this, most carried crude oil (31 per cent worth €14.4 billion), then diesel oil (22 per cent worth €10.3 billion).
Although the number of British companies insuring Russian oil has decreased, its transit is still heavily dependent on vessels insured in the UK, the analysis notes. Alun Cairns, a former Welsh secretary and current Conservative Party MP, argued that companies should be aware of potential price cap abuse.
The West of England P&I Club insured the largest value of Russian oil products (€20.1bn), followed by NorthStandard, the merged North and Standard Insurance in February 2023, (€17bn).
The data reveals that last year was Russia’s most active year of drilling in the first 11 months, with a total depth of 28,100 kilometres. CREA’s analysis suggests that “Russia’s reliance on UK insurance” to transport its oil “provides the UK with significant leverage which they can use to lower the price cap” and “implement better enforcement,” which could significantly reduce Russia’s oil export revenues.
Cairns raised the issue of Russian oil shipping several times in Parliament, noting that it took seven years for the US to close all loopholes in Iranian oil shipments after it instigated sanctions.
