Insurance for vessels calling at Russian Black Sea ports has increased in price by up to 10% of the vessel's cost

The cost of insuring ships for entry into the Black Sea has increased to 10% of the cost of the ship, while until 2022 it did not exceed 0.25-0.35%. That is, with a ship cost of $40 million, the cost of insurance is $4 million, which increases the cost of transporting 1 ton of grain by $67/t.

A 30-fold increase in insurance costs reduces the competitiveness of Russian grain on the world market.

International insurance companies almost do not operate in the Black Sea, and Lloyd's has considered the area dangerous since 2022, so ships entering Russian ports cannot receive standard insurance coverage.

The only working tool currently is the Russian National Compensation Pool (RNCP), but it can insure no more than 50-70 vessels at a time, which is not enough to cover all voyages.

Analysts warn that shipping and exports through the Black Sea will remain limited even after ports reopen until insurance rates drop to at least 2%. Therefore, the return of international insurers to the Black Sea is necessary for exports to resume, and political agreements are needed for this.