Insurance barrier to Russian oil, causes serious crisis regarding traffic at Turkish straits

The insurance barrier was also added to the sanctions imposed on the export of Russian oil, which began with the application of a ceiling price. Turkey’s introduction of a letter of guarantee confirming the validity of the P&I insurance of tankers carrying Russian oil that will pass through the straits starting from December 1, stopped tanker traffic.

The ceiling price application initiated by the European Union against Russian oil the previous day and Turkey’s practice bringing obligation to issue a letter of guarantee confirming the up-to-date P&I insurance of tankers passing through the straits starting from December 1 caused a crisis in the tanker market. The number of ships already waiting to pass through the Turkish straits has reached 15. While European P&I companies have announced that they cannot provide this guarantee, they are worried that the crisis will grow if one of the parties does not back down.

TURKEY REQUIRES LETTER OF GUARANTEE FROM TANKERS PASSING THROUGH STRAITS

Following the consensus reached by the European Union countries in June, the G7 countries and Australia launched the 60 dollar ceiling price application for oil imported by sea from Russia, the World’s second largest oil exporter, on December 5. While various sanctions are waiting for those who exceed this ceiling price, problems have also begun in the passage of ships carrying Russian oil through the Turkish Straits. The reason for this situation is the General Directorate of Maritime Affairs of the Ministry of Transport and Infrastructure has started to request a letter of guarantee confirming that tankers passing through the Turkish straits have up-to-date P&I insurance starting from December 1.