Many countries have found loopholes to buy oil from Russia, despite the restrictions imposed by the US and EU countries. Western insurers, namely, the International Group of Protection and Indemnity Clubs, are very unhappy about this.
IGP&I representatives note that the Russian oil price cap imposed by the G7 countries has not achieved its goal. It turns out that the price ceiling on raw materials from Russia is useless.
According to analysts of the International Group of P&I Clubs, the price ceiling on Russian oil contributed to the increase in the shadow transportation market.
The insures stated that sanctions, which oblige G7 companies to comply with restrictions, have become the driver of shadow market growth. However, these countries can operate legally outside of these frameworks.
"This policy seems increasingly unenforceable as more ships and related services become involved in this parallel trade,” the International Group stated.
Western insurers estimate that 800 tankers left the organization after the introduction of a price ceiling on Russian oil. Notably, the International Group of P&I Clubs unites 12 companies that provide insurance for 87% of the global merchant fleet.
Earlier, representatives of the G7 countries declared their readiness to comply with restrictive measures against Russian raw materials. Western oil sanctions against Russia came into force on December 5, 2022. As a result, the EU stopped accepting Russian oil transported by sea. The G7 countries, Australia, and the EU imposed a price ceiling of $60 per barrel on crude for sea transportation. In response, Russia banned oil shipments to foreign companies if contracts stipulated a cap on its price. This measure took effect on February 1, 2023.
