Key Insurer Says Russia Oil Price Cap Increasingly Unenforceable
- Just 16% of all Russia oil flows had IG cover in April
- Moscow is moving its fleet away from western oversight
Rail wagons for oil cargo, near Moscow.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
A Group of Seven-imposed cap on the price of Russia oil is becoming increasingly unenforceable, an organization at the heart of the global insurance industry said, offering one of the most direct criticisms yet of measures that were meant to deprive the Kremlin of petrodollars.
About 800 oil tankers that were previously covered by member organizations of the International Group of P&I Clubs have migrated into what’s known as a shadow-fleet, the club said in a written submission to a UK government inquiry on the effectiveness of sanctions on Russia. In addition, there’s no way for insurers to check whether traders are genuinely sticking to the price cap.