London blocks Russia's maritime trade with the civilized world

The world agency Reuters reported that yesterday the London Marine Insurance Market declared all waters of Russia, including the Black Sea, the Baltic and the pores of the Far East, a "military zone". This means that the owner of a vessel that plans to enter the territory will be obliged to notify its insured and pay a special "military premium", which can amount to 5% of the value of the vessel. This will make it unprofitable for ships to pass through these areas.

What is the London Marine Insurance Market?

It is the world's largest market, covering a third of the insurance market for all merchant ships in the world. Founded by Lloyds in the 17th century, this market still sets the rules for the whole world, including standard contracts, insurance premiums and more. Therefore, it is to be expected that other large markets (primarily Bermuda and Switzerland) will soon support his decision.

When a maritime territory is declared a "military zone", the owner of a ship planning to enter such a territory is obliged to notify his insured and pay a special "military premium".

For example, a typical ship costs $ 30 million, so to enter the "military zone" its owner must pay an additional $ 1.5 million in insurance premiums, which increases by 50-100% the cost of freight for Russian cargo.

Such measures will reduce the number of ships ready to enter Russian ports. Only ships from poor countries that are insured elsewhere will be able to provide transportation services to the Russians.

The new package of sanctions and the refusal to accept Russian ships in EU ports, along with new insurance restrictions, will continue to complicate the aggressor's international trade and the sending and receiving of goods.