UK and EU hit Russian oil cargoes with insurance ban

UK and EU hit Russian oil cargoes with insurance ban

The UK and EU have agreed a co-ordinated ban on insuring ships carrying Russian oil, shutting Moscow out of the vital Lloyd’s of London insurance market and sharply curbing its ability to export crude, according to British and European officials.

Lloyd’s has been the heart of the marine insurance industry for centuries and blocking its members from insuring Russian oil cargoes will pile more pressure on global commodity markets, which have been in turmoil since Moscow’s invasion of Ukraine.

The insurance ban is part of a new EU sanctions package targeting Russian oil exports. Brussels agreed an embargo on most Russia oil shipments late on Monday but the involvement of the UK unlocked the insurance ban. This could have much broader consequences for Moscow’s exports and leave it looking for insurance in smaller, less developed markets.

Insurance has been a big sticking point in the development of the EU oil ban, with underwriters warning of the wider economic consequences of clamping down on a sector that is crucial to international trade.

There was also concern in Brussels that the EU acting alone on insurance sanctions would mean that more business flowed to London’s international market. “There is a level playing field issue if London