Japan will not insure vessels in Russian waters-Nikkei
2022.12.23 23:20
Japan will not insure vessels in Russian waters-Nikkei
Budrigannews.com – The newspaper reported on Saturday that three Japanese insurance companies would stop covering ships for damage in all Russian waters due to the war in Ukraine. This could have an impact on Japan’s imports of energy like liquefied natural gas (LNG).
The business daily reported that Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., and Mitsui Sumitomo Insurance Co. began informing shipowners of their decision on Friday.
On Saturday, attempts to obtain comments from the three businesses were unsuccessful.
According to the newspaper, reinsurance companies’ refusal to take on risks associated with Moscow’s ten-month-old war was the impetus for the insurers’ decision.
According to the statement, the halt, which applies even to waters in Russia’s Far East that are far from the fighting, may make shipping there too risky for some businesses.
The Nikkei reported that Japan’s LNG imports from Russia’s Sakhalin-2 gas and oil project might be affected. Gazprom owns a portion of the complex on Sakhalin Island (MCX:) because it imports 9% of Japan’s LNG, and Japanese companies, is essential to the country’s energy security.
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The Nikkei reported that the three Japanese insurers will likely begin negotiating with reinsurance companies following the Christmas break regarding the possibility of restarting coverage.
