EU Drops Plan to Ban EU-Owned Ships From Shipping Russian Oil to Third Countries
The EU plans to drop the piece of its sixth sanctions package on Russia that would have banned EU-owned vessels shipping Russian oil to third countries, according to people familiar with the matter, Bloomberg reported May 9. The proposed ban, part of the sanctions on Russia following its invasion of Ukraine, was nixed following pushback from certain EU member states, including Greece, whose economy leans heavily on shipping. Further, a lack of a coherent position from the G-7 nations was at the heart of the proposal being dropped.
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However, the proposed sixth round of sanctions includes a prohibition on insurance and would be a hindrance for oil exporters, Bloomberg said. This ban would cover the majority of the global fleet of oil tankers seeking to ship Russian oil. The insurance protects vessels against risks including oil spills and is bought from 80 reinsurers, including from more than 20 of the 25 largest insurance providers in the world, many of which are European, Bloomberg said.