British Insurers Worried with the Danger of Sanctions against Russian Shipping

June 1, 2023

The imposition of new sanctions restricting the transportation of Russian oil by sea is unlikely to affect Moscow’s policy, but it will harm the shipping system. This assessment was made by Neil Roberts, head of Marine and Aviation Insurance Div. at Lloyd’s, in an article posted on LinkedIn, TASS reports.

“Based on the experience of the past 15 months, the announcement of another package of measures against maritime transportation and those who help [Russia] carry it out is unlikely to change the strategic situation and will only further cut the branch on which the world’s legal supply system by sea is held,” – Roberts pointed out, expressing doubts that the sanctions policy in this direction will force Russia to change its course in any way.

“In both the past and the present, there are examples of countries that pursued their own interests instead of complying with restrictive financial measures imposed by someone far away, so it is not surprising that we are dealing with sanctions circumvention as a result. There are companies that are ready to transport Russian oil, whatever its price,” Roberts said.

The problems associated with the “double-edged nature of sanctions” will become more acute in the future, according to a Lloyd’s official, and in the absence of universal support for restrictive measures, the West needs to look for new tools and act more selectively.

“The shipping industry, which has become entangled in a web of complexities, is only resilient up to a certain point and would very much like to be reassured that there is a plan B,” he said.




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