Indian Tanker Moving Russian Crude Loses Insurance Over Price Cap

Oil tanker Gatik lost industry standard insurance for its Russian crude oil shipment after buying oil above the G7 price cap according to sources.

• Gatik Ship management lost protection cover that was provided by the American Club. The cover was terminated because the American Club was informed that Gatik intended to transport barrels bought at prices above the threshold, the source said.
• The insurance that Gatik lost is important for vessels when they enter ports or sail through key waterways like Turkey’s Bosphorus and Dardanelles shipping straits.
• Earlier this month, several Indian banks have told refiners and authorities they won’t process payments for oil price above the G7 price cap.
• Heightened concern among Indian banks follows a warning earlier this month from the US Office of Foreign Assets Control that failure to itemize additional costs — such as shipping, insurance, freight or customs charges — could be used to obscure the actual standalone purchase price of the oil.