Russia’s state-owned RNRC to reinsure oil shipments: Sources
(Reuters) — State-controlled Russian National Reinsurance Co. is now the main reinsurer of Russian ships, including Sovcomflot’s fleet, after Western insurance companies withdrew cover for Russian shipowners, three people familiar with the matter told Reuters.
Insurance is essential for maritime transport, particularly oil cargoes that require the highest safety standards due to the risk of spills and shipping flammable material on the high seas.
Before Western sanctions were imposed on Russia over its invasion of Ukraine, which Moscow calls a “special military operation,” insuring such cargoes relied on reinsurance from an international pool of companies offering broad coverage.
Western insurers withdrew cover from state-run Sovcomflot when Russia's biggest shipping group was hit by sanctions, but Western insurance sources said the Russian replacement cover would likely be enough to keep Russian vessels sailing.
Russian Security Council Deputy Chairman Dmitry Medvedev said this week that state guarantees would be offered as insurance for moving Russian goods, without giving details.
The sources, who declined to be identified due to the sensitivity of the issue, said Russian central bank-controlled RNRC is now the main company providing state guarantees to Russian insurers that offered cover such as Ingosstrakh, which insures Russian tankers, including SCF's fleet.
RNRC, Ingosstrakh and Sovcomflot did not respond to Reuters’ requests for comments.
Ships are commercially required to have protection and indemnity (P&I) insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.
