Western insurers offer coverage for Russian oil despite worries about price caps
- Western insurers, including American Club, West of England, and Norway's Gard, have provided insurance for Russian crude tankers, facilitating oil trade despite G7 price cap restrictions.
- Insurers rely on attestations from parties involved in the trade to ensure compliance with the $60 per barrel price cap imposed on Russian oil.
- The International Group of P&I Clubs has raised concerns about the flawed attestation process, risking potential breaches of the price cap and exposing insurers to legal issues.
A group of Western insurers, such as American Club, West of England, and Gard from Norway, have continued to provide insurance coverage for tankers transporting Russian crude oil, enabling the oil trade to persist despite constraints imposed by a G7 price cap. The insurers depend on attestations from trade participants to verify adherence to the $60 per barrel price cap on Russian oil, while concerns have been raised by the International Group of P&I Clubs regarding the flawed nature of this process, potentially exposing insurers to legal risks.
