Japanese companies will not insure vessels in russian waters

Japan’s largest insurance companies refuse to insure against damage to vessels navigating in russian waters.

Three Japanese insurance companies (Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance) will stop insuring ships against war damage in all russian waters from January 1, Nikkei Asia reports.

As noted, the three key companies began to inform shipowners of such a decision, taken in view of the refusal of transatlantic companies to take on the risks associated with war.

The decision by Japanese insurers means they will not cover any war-related damage that occurs in any russian waters, even in the Far East.

Lack of insurance coverage can make shipping in russian waters too risky for most maritime transport operators. In particular, this may affect the Japanese import of LNG, which is carried out under the Russian Sakhalin-2 project.

Prior to this, shipowners were obliged to conclude additional agreements with insurers to cover military risks during shipping in the territorial waters of russia or Ukraine.