{"id":344407,"date":"2025-08-14T17:30:20","date_gmt":"2025-08-14T17:30:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/344407\/"},"modified":"2025-08-14T17:30:20","modified_gmt":"2025-08-14T17:30:20","slug":"insurers-urged-to-reassess-russian-oil-coverage-amid-uk-and-eu-price-cap-changes","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/344407\/","title":{"rendered":"Insurers urged to reassess Russian oil coverage amid UK and EU price cap changes"},"content":{"rendered":"<p>     <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"\" loading=\"eager\" height=\"640\" width=\"960\" class=\"yf-1gfnohs loader\"\/>      <\/p>\n<p class=\"yf-1090901\">An insurance association has urged its members to assess their exposure to Russian oil as the UK and EU prepare to update their oil price cap regimes.<\/p>\n<p class=\"yf-1090901\">The <a href=\"https:\/\/www.cityam.com\/people-and-organizations\/oil-prices\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:oil;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">oil<\/a> price cap, introduced by the G7, EU, and Australia, aims to restrict Russia\u2019s oil revenues by preventing Russian companies from selling oil above a specified threshold.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.theguardian.com\/world\/2025\/jul\/18\/eu-and-uk-lower-price-cap-on-russian-oil-in-bid-to-curb-war-on-ukraine\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:In July,;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">In July,<\/a> the UK and EU announced plans to lower the price cap to further limit Russia\u2019s ability to fund its war in Ukraine. The new measures take effect on 2 September in the UK and 3 September in the EU.<\/p>\n<p class=\"yf-1090901\">However, the US reportedly opposed the European initiative and did not support lowering the Russian oil price cap.<\/p>\n<p class=\"yf-1090901\">Because of the divergence in price caps among the three powers, <a href=\"https:\/\/www.cityam.com\/lma-driving-change-in-lloyds-50bn-marketplace\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:the Lloyd\u2019s Market Association;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">the Lloyd\u2019s Market Association <\/a>(LMA) has warned its members to reconsider their exposures, as this could affect sanctions clauses.<\/p>\n<p class=\"yf-1090901\">LMA\u2019s legal and regulatory director, Arabella Ramage, explained: \u201cIf a US insured or US lead market uses a $60 oil price cap, the impact for EU or UK insurers could be that any standard sanctions clause in their policies is triggered.\u201d <\/p>\n<p class=\"yf-1090901\">The standard <a href=\"https:\/\/www.cityam.com\/people-and-organizations\/lloyds-market-association\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LMA;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">LMA<\/a> oil price cap clauses were drafted with the expectation that the oil price cap coalition would set the same price, stating, \u201cPrice cap means the price, or cap, set for the purchase or sale of the Russian oil or the Russian oil product by the price cap coalition as may be amended from time to time,\u201d and refer throughout to the \u2018relevant\u2019 price cap.\u201d<\/p>\n<p class=\"yf-1090901\">As a result, Ramage highlighted: \u201cThe divergence between the UK, EU and US approaches means in practice that UK\/EU entities may not necessarily be able to follow a US lead on business involving Russian oil unless the US party adopts the UK\/EU position on price cap and ensures that they can obtain the necessary supporting documentation to demonstrate compliance with UK\/EU requirements.\u201d<\/p>\n<p class=\"yf-1090901\">The insurance body has advised its members that any underwriting entity with exposure to Russian oil, including hull, cargo, political risk, P&amp;I, and liability or reinsurance, \u201cshould take steps to protect themselves appropriately.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"An insurance association has urged its members to assess their exposure to Russian oil as the UK and&hellip;\n","protected":false},"author":2,"featured_media":344408,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[2000,299,5187,1699,5393,5399,5422,16],"class_list":{"0":"post-344407","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-eu","9":"tag-europe","10":"tag-european","11":"tag-european-union","12":"tag-oil-price","13":"tag-price-cap","14":"tag-russian-oil","15":"tag-uk"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115028310369032331","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/344407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=344407"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/344407\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/344408"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=344407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=344407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=344407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}