The EU and the UK have agreed to ban insuring ships carrying Russian oil. This will reduce export opportunities

The UK and the European Union have agreed on a ban on insuring Russian ships carrying oil, writes The Financial Times.

The ban will deprive carriers of Russian oil of access to the British insurance market Lloyd's of London, the largest for maritime transport.

Thus, the publication notes, Russia’s ability to export crude oil by sea will be reduced, and it will have to turn to less reliable insurers.

The ban on insuring the shipping of Russian oil was part of the sixth package of EU sanctions, the approval of which was announced on May 31. However, without support from the UK, which has jurisdiction over Lloyd's of London, it would be virtually useless.

According to FT sources, representatives of the British insurance market opposed the embargo. In particular, they pointed out that it would be difficult to accurately determine the origin of oil carried by ships leaving Russian ports. One of the publication’s sources said that through ports in the Russian Federation, for example, oil supplies from Kazakhstan are carried out, which are not limited by any sanctions.

The ban on insurance of maritime transport of Russian oil, the publication notes, could lead to even greater uncertainty in world markets. Exchange oil prices have already risen to a two-month high after the European Union announced a partial embargo on supplies from Russia.

• The European Union announced on May 31 that it had agreed on a partial embargo on Russian oil, which would not affect pipeline supplies. By the end of the year, the EU plans to reduce Russian oil imports by at least 90%.