By Anthony Marcus, correspondent for Eurasia Business News, June 17, 2024. Article n°1036.
The Liberian Maritime Registry, which oversees approximately 16% of the world’s ships by capacity, has revoked its authorization for the Russian insurer Ingosstrakh Insurance Co. to issue “blue cards”, according to a Marine advisory released on June 13.
Blue cards are crucial documents that serve as proof of insurance coverage for risks like oil spills and collisions. They are essential for ships to gain entry into ports.
By withdrawing approval for Ingosstrakh to issue these blue card documents, the Liberian Register has effectively denied Russian-insured vessels the ability to obtain this mandatory certification required for international sailing and port access.
Ingosstrakh is a major Russian insurance company with a long history dating back to the Soviet era, which has expanded its international presence over the decades but now faces challenges due to the ongoing Western sanctions against Russia.
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This action by the Liberian Register, one of the world’s largest shipping registries, aims to enforce compliance with sanctions imposed on Russia over its invasion of Ukraine. It deals a significant blow to Russia’s efforts to maintain insurance coverage and maritime trade for its vessels amid tightening Western restrictions.
The revocation highlights the importance of adhering to stringent insurance regulations and safety standards in the global shipping industry. It underscores the Liberian Registry’s commitment to upholding these norms for vessels sailing under its flag.
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In summary, you are correct that the Liberian Maritime Registry has withdrawn authorization for the sanctioned Russian insurer Ingosstrakh to issue the critical “blue card” certification documents, effectively restricting the ability of Russian ships to access international ports and continue maritime operations.
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On June 13, the United Kingdom has imposed sanctions on Russian insurer Ingosstrakh, a crucial player in the operation of the Russia’s “shadow fleet” of oil tankers, as part of a push to tighten measures designed to restrict Moscow’s energy revenues.
The revocation of approval for the Russian insurer Ingosstrakh to issue critical certification documents like “blue cards” and classification certificates has significant consequences for ships currently insured by them:
- Inability to access ports: Without valid blue cards proving insurance coverage for risks like oil spills and collisions, ships insured by Ingosstrakh may be denied entry into ports globally. This severely restricts their ability to conduct international maritime trade.
- Compliance issues: Major shipping registries like Liberia and classification societies like Lloyd’s Register have withdrawn authorization for Ingosstrakh to certify vessels under their flag/class. This puts Ingosstrakh-insured ships in violation of mandatory safety and insurance regulations.
- Operational risks: Lack of proper certification increases the risk of detentions, fines, and potential incidents for ships sailing without valid documentation. Their seaworthiness and ability to legally operate could be questioned.
- Insurance coverage gaps: Ingosstrakh has warned it may not be able to provide coverage or pay claims if a sanctioned vessel has an incident due to sanctions clauses in policies. This leaves ships exposed to massive uninsured liabilities.
- Difficulty finding alternative coverage: With Western insurers already exiting the Russian market due to sanctions, Ingosstrakh-insured ships may struggle to find replacement coverage from compliant providers.
- Trade disruptions: Countries like India may reconsider allowing entry to vessels insured by the newly sanctioned Ingosstrakh, further impeding their trade operations.
In essence, ships currently insured by Ingosstrakh face major hurdles to legally sail, conduct business, and maintain adequate insurance protection due to sanctions severing Ingosstrakh’s ability to provide valid certification and coverage
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