LONDON: War insurance costs for ships sailing to the Black Sea have spiked again, with insurers reviewing policies daily as the conflict in Ukraine spills into sea lanes, five shipping and insurance sources said on Thursday.
The Black Sea is crucial for the shipment of grain, oil and oil products. Its waters are shared by Bulgaria, Georgia, Romania and Turkiye, as well as Russia and Ukraine.
Turkiye’s Foreign Minister Hakan Fidan said on Wednesday that attacks on Russia-linked tankers in the Black Sea in recent days threatened the safety of all in the region and showed that the reach of the war in Ukraine was expanding.
Ships sailing into Russian or Ukrainian Black Sea ports or terminals around the Sea of Azov require additional war-risk insurance, typically set for a seven-day period.
Putin Threatens To Sever Ukraine’s Sea Access
Underwriters previously reviewed the terms of war insurance every 48 hours, but the latest developments have prompted daily reviews, the sources said.
Russian President Vladimir Putin threatened on Tuesday to sever Ukraine’s access to the sea in response to the tanker attacks, adding that Moscow would take measures against tankers of countries that helped Ukraine.
The difference between war insurance costs for Russian and Ukrainian ports had narrowed in the past two days. Russian ports had previously commanded higher premiums, the sources said.
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