The Lloyd’s of London insurance market has already placed the Black Sea region on its high risk list. — Reuters
LONDON: Insurers are reviewing whether to freeze cover for any ships willing to sail to Ukraine after Russia on Monday quit a United Nations-backed deal that allows the export of grain through a wartime Black Sea safe corridor, industry sources say.
The agreement, brokered by Turkiye last July, aimed to alleviate a global food crisis by allowing Ukrainian grain blocked by Russia’s February 2022 invasion of its neighbour to be exported safely.
“Due to the collapse of the Black Sea corridor deal, most shipowners will now refrain from calling Ukrainian ports,” said Christian Vinther Christensen, chief operating officer with Danish shipping group Norden. The last ship left Ukraine under the deal last Sunday.
Insurance has been vital to ensure shipments through the corridor and industry sources said Russia’s decision was being evaluated in terms of whether cover in some form could continue.
“Some underwriters will look to take advantage with a hefty increase in rates. Others will stop offering cover. The (key) question is whether Russia mines the area which would effectively cease any form of cover being offered,” one insurance industry source said.
The Lloyd’s of London insurance market has already placed the Black Sea region on its high risk list.
“Annual cover remains in place but voyages to listed areas will be assessed individually as and when seen,” said Neil Roberts, head of marine and aviation at Lloyd’s Market Association, which represents the interests of all underwriting businesses in Lloyd’s. — Reuters
