Remarkably, many Western insurance companies are willing to help Russia circumvent the oil price cap. According to Reuters, several Western insurance companies are providing coverage for Russian crude oil. These insurers are covertly offering services that include coverage for tankers transporting Russian oil, dodging the price cap set by G7 countries.
Reports indicate that in 2024, five insurers, including American Club, West of England, and Norway's Gard, insured 10 tankers carrying Russian crude oil to Asia. Notably, American Club and West of England provided insurance for two vessels—Gioiosa and Orion I—that undertook oil voyages earlier this year.
Both tankers were loaded with crude oil from a Russian state company in the Baltic and headed for China. According to the insurers, they took into account the statements of the shipping company that the oil price was set below the established cap of $60 per barrel.
Reuters analysts believe that the scale of current Western insurers' assistance in covering Russian oil deals is significant. Preliminary estimates suggest that in the first half of 2024, Russian authorities earned 6.8 trillion rubles from oil and gas sales, a figure 61.6% higher than that recorded in the first half of 2023.
