Turkish tanker in line due to Russian sanctions
2022.12.09 13:35
Turkish tanker in line due to Russian sanctions
Budrigannews.com – As the number of tankers awaiting their exit from the Black Sea through the Turkish straits continued to rise on Friday, Turkey emerged as a crucial obstacle in a complex international strategy to deprive Russia of wartime oil revenues.
Despite days of pressure from Western officials, Ankara has decided not to scrap a new rule about insurance inspection that it implemented at the beginning of the month.
According to a statement released on Friday by the Tribeca shipping agency, a total of 28 oil tankers are standing in line to leave the Bosporus and Dardanelles straits.
Australia, the European Union, and wealthy members of the G7 agreed to prohibit shipping service providers like insurers from assisting in the export of Russian oil unless it is sold at a set price, or cap, to deprive Moscow of wartime revenue.
The maritime authority of Turkey stated that it would continue to prevent oil tankers without the appropriate insurance letters from entering its waters.
If it turned out that the oil cargoes they covered were sold at prices that were higher than the cap, Western insurers stated that they were unable to provide the documents Turkey requested because doing so would put them at risk of sanctions.
According to the Turkish government, if a vessel in violation of sanctions caused an accident, it was possible that the damage would not be covered by an international oil spill fund.
It stated, “(It) is out of the question for us to take the risk that the insurance company will not meet its indemnification responsibility,” and noted that Turkey was continuing discussions with insurance companies and other nations.
More Household welfare in the US raises concerns
It also said that most of the ships waiting near the straits were EU vessels, and that a lot of the oil was going to EU ports, which annoyed Ankara’s Western allies.
According to the Turkish authority, Turkey planned to remove eight tankers without P&I insurance that were awaiting passage through the Dardanelles in the Marmara Sea. Following the strait’s closure to maritime traffic, these tankers would be escorted across the Dardanelles under additional measures, according to the statement.
According to a shipping source, tug escorts were planned for four of the tankers waiting to cross the Dardanelles on Saturday.
Following Turkey’s initial request for insurance letters from oil tankers, a Turkish-flagged tanker received a letter from an international P&I group member insurance company. According to the statement, that tanker crossed the Bosphorus on Friday.
In the oil and tanker markets, the ship backlog is causing a growing sense of unease. Daily, the Bosphorus and Dardanelles straits in Turkey transport millions of barrels of oil from Russian ports to the Mediterranean.
Kazakh oil is in the majority of the tankers waiting at the Bosphorus, and Treasury Secretary Janet Yellen stated on Thursday that the United States administration did not see any reason why such shipments should be subjected to Turkey’s new procedures.
She added that there was no reason for Washington to believe Russia was involved in Turkey’s decision to prevent ship transits.
Friday, the European Commission stated that Turkey could continue to verify insurance policies “exactly as before” and that the delays were unrelated to the price cap.
A spokesperson told Reuters, “We are therefore in contact with the Turkish authorities to seek clarifications and are working to unblock the situation.”
Since Moscow invaded its neighbor in February, Turkey has maintained good relations with both Russia and Ukraine. It was a crucial factor in the July agreement to free up grain exports from Ukrainian Black Sea ports, which was supported by the United Nations.
However, Ankara’s and Washington’s relations with NATO allies have occasionally been rocky, as evidenced by Turkey’s renewed calls for the United States to stop supporting Syrian Kurdish forces last month.
On Thursday, the Biden administration imposed sanctions on prominent Turkish businessman Sitki Ayan and his network of companies, alleging that Ayan helped Iran’s Revolutionary Guards facilitate oil sales and money laundering.
