The European Union’s executive body is about to take a new step to cut off Russia’s sources of income to finance the war in Ukraine. The EU is now examining the feasibility of a proposal by one of its member states to impose sanctions on Russia’s Ingosstrakh Insurance Co.
The proposal, which may require the EU to expand its listing criteria, targets one of the main suppliers of insurance to tankers transporting Russian oil after the Group of Seven imposed price caps on most of Russia’s seaborne crude oil and fuel in late 2022 and early 2023.
If this decision is implemented, there will be far-reaching and difficult-to-quantify risks and costs not only for Russia’s oil trade, but also for the wider international commodity shipments for which Ingosstrakh provides cover.
According to close sources, the decision is still at an early stage and Moscow-based Ingosstrakh is not currently included in the final draft of the new sanctions package being negotiated by the bloc.
Even if the proposal is approved by the European Commission, it is likely to face numerous obstacles as some member states, including Hungary, oppose many of the measures targeting Russia’s energy sector. EU sanctions require the support of all member states.
Ingosstrakh, one of Russia’s five largest insurance companies, said it operates in full compliance with all applicable legislation and follows strict compliance procedures.
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