Yesterday, no ships were spotted in the direction of Ukrainian Black Sea ports due to insurance problems

UkrAgroConsult

On January 3, 2023, there were no grain corridor vessels in the Black Sea heading to the ports of the Odesa region (in contrast to the usual picture of recent months).

The head of the Monitoring Group of the Institute of Black Sea Strategic Studies, BlackSeaNews editor-in-chief Andriy Klymenko writes about this on his Facebook page.

Most likely, these are the consequences of the fact that the International Group of P&I Clubs – an international mutual insurance association – refused to re-insure war-related risks from 01.01.2023. That is, from January 1, 2023, the region of Ukraine, Russia, Belarus and Moldova will not be subject to the extension or conclusion of new contracts in terms of losses/damages caused by military actions.

The expert explains that one of the three policies required for marine transportation will now not cover the shipowner’s liability risks associated with war. That is, it will become (already has become) extremely difficult to charter a vessel to Ukrainian ports (and not only Odesa, but also Danube).

“The coordination council of representatives of the Ministry of Agriculture, the Ministry of Infrastructure, the Ministry of Economy, the Ministry of Finance, the Ministry of Foreign Affairs, “Ukrzaliznytsia”, the State Border Service, the State Production and Consumer Service, the State Customs Service, “Ukrtransbezpeka”, USPA and specialized associations has already discussed this problem and (according to media reports) turned to the Cabinet of Ministers with a proposal to allow Ukrainian insurance campaigns to pay abroad for reinsurance. (The logic is clear, but do Ukrainian insurance companies have the appropriate funds…), adds Andriy Klymenko. — I am not an expert in the field of insurance, but I understand that a large financial fund should be quickly created to insure such risks. I am sure that this is possible only with the intervention of the highest leadership of the state.”

Tags: Ukraine, export, grain, insurance, war