The russian “shadow fleet” can cause an ecological disaster
4.04.2023 - 11:50
The “shadow fleet” of tankers transporting oil in the interests of russian federation can provoke an environmental disaster.
The fleet for the “shadow” transportation of russian oil is made up of outdated tankers with limited insurance coverage. Such vessels threaten the environment, said the executive director of the marine insurance company Gard, Rolf Tore Roppestad, the Financial Times reports.
Roppestad warned of rising oil spill risks after Western sanctions against russia left thousands of vessels without third-party liability coverage from “well-vetted” insurers.
“No one will be there to help sort out the mess [without adequate liability coverage],” Gard’s director said. “This is a social and environmental disaster waiting to happen, and it should be of great concern to all of us.”
There is concern in the energy sector that smaller and less experienced traders are currently transporting crude over long distances in older vessels and with unknown levels of insurance.
In an interview with the Financial Times, Roppestad estimated that after russia invaded Ukraine, “several thousand” more vessels traded around the world without the cover of the International Group of 12 Protection and Indemnification Clubs. The group consists mainly of European and American insurers, including Gard, which historically covered about 90% of the world’s ocean tonnage.
Roppestad expressed concern about the reliability and ability of non-IG insurers to handle a spill or other accident. He also noted that in the event of an environmental disaster, the culprits may not bear responsibility and may not reimburse the cost of eliminating the consequences of accidents.
International Group P&I Clubs are jointly owned by shipowners and charterers, and offer third party liability insurance, for example in the event of a shipwreck. P&I coverage is critical to maritime trade and is a requirement for entry into global ports.
According to insurance experts and ship documents, many ships that avoid IG coverage rely on other P&I insurance companies in russia and the Middle East. Iran and Venezuela have long used their own “shadow fleets” of several hundred vessels to circumvent sanctions. Iran has its own P&I insurance company, Kish, created after rejections from Western insurers.
