Why Turkey lifts controls on oil tankers
Turkey will tighten controls on the insurance coverage of oil tankers passing through its straits. It is becoming increasingly difficult for Russia to export crude oil
In anticipation of the entry into force of the European sanctions on Russia's oil, Turkey has informed shipping companies that, starting December 1, they will have to show documents certifying the insurance coverage of their vessels to be able to cross the straits of the Bosphorus and the Dardanelles.
THE EUROPEAN SANCTIONS ON RUSSIAN OIL
The sanctions imposed by the European Union on Russian oil – which will come into effect on December 5 – provide not only for the embargo on barrels transported by ship , but also for the prohibition of supplying Moscow with a whole series of services related to the maritime shipment of crude oil, just like insurance.
WHAT TURKEY WANTS
Since insurance covers both oil spills and collisions between ships or with other objects, Turkey wants to guarantee the safety of navigation and the protection of its waters. In doing so, however, it will make the marketing of Russian crude oil even more complicated.
THE IMPORTANCE OF THE DARDANELLI STRAIT FOR RUSSIA
Over the past six months, Russia has transported nearly 650,000 barrels of crude oil a day from its Black Sea port of Novorossiysk through the Dardanelles Strait, according to Bloomberg data.
WILL RUSSIA BE ABLE TO GET INSURED?
The Turkish Transport Ministry explained that tankers sailing near the Dardanelles, or wishing to cross the strait, will have to provide the Turkish authorities with a letter from their insurer certifying the coverage of the ship and cargo.
From Ankara they explained to Bloomberg that the new insurance rules were introduced to ensure compliance with the European sanctions against Russia, in which, however, Turkey does not participate. There are economic reasons: if an uninsured tanker were to cause an accident with another vessel, shipping in the Turkish Straits could come to a halt.
The agency source added that the regulation could have a negative impact on Russian tankers if they fail to obtain protection and indemnity insurance coverage for accidents or spills.
The European and British sanctions, in fact, allow ships carrying Russian barrels to obtain basic coverage, provided that the oil has been purchased at a price below a certain threshold (not yet established, however).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/turchia-assicurazione-petroliere-stretti/ on Wed, 23 Nov 2022 06:41:17 +0000.