The UK supports a complete ban on the provision of maritime services to Russian oil shipments, including insurance, and is prepared to implement such a measure jointly with the European Union.
Esther Blyth, Deputy Director of the Russia and Belarus Sanctions Department at the UK Foreign, Commonwealth, and Development Office, stated this while speaking to the Parliamentary Subcommittee on Economic Security.
“We support the move to a comprehensive ban on maritime services for Russian crude oil and petroleum products, working with our international partners. We continue to discuss this with the Europeans,” Politico quoted her as saying.
The proposed ban would cover the provision of financial, legal, insurance, and other services to any carriers of Russian oil, regardless of the selling price of the cargo. The UK and EU currently have a price cap on Russian oil, which was recently lowered to $44.10 per barrel. Companies are prohibited from providing services (including insurance) if the oil is sold above this level.
The new measure essentially eliminates the very possibility of using Western insurance and other services for any tankers transporting Russian oil, even if the price is below the cap. This should significantly complicate the operation of the “shadow fleet,” which currently accounts for the bulk of Russian oil exports in circumvention of the existing restrictions.