The state-controlled Russian National Reinsurance Company (RNRC) is now the main reinsurer of Russian ships after Western insurance companies withdrew coverage for Russian shipowners, three people familiar with the matter told Reuters.
According to the agency, insurance is crucial for maritime transport, especially in oil shipments that require the highest safety standards due to the risk of leakage and the flammable materials they carry.
Prior to Western sanctions on Russia for its invasion of Ukraine, the insurance of such cargoes was based on reinsurance by a number of international companies offering a wide range of coverage.
However, Western insurance companies withdrew their coverage from state-owned Sovcomflot (SCF), Russia’s largest shipping group, when it was added to the sanctions list.
According to Western insurance sources, however, the Russian coverage will now probably be enough for the Russian ships to continue to move.
For his part, Russian Security Council Vice President Dmitry Medvedev said this week that state guarantees would be provided as insurance for the movement of Russian goods, without elaborating.
Reuters sources, speaking on condition of anonymity because of the sensitivity of the issue, said the Russian central bank-controlled RNRC is now the company that provides state guarantees to Russian companies that insure Russian tankers, including the SCF fleet.
Russia’s central bank announced in March that it had increased its capitalization of the RNRC to 300 billion rubles from 71 billion rubles, while increasing its guaranteed capital to 750 billion rubles in order for the company to have sufficient resources to provide reinsurance. .