Oil tanker traffic jam off Turkey as price cap on Russian crude kicks in
Ankara is demanding confirmation of insurance cover
05 December 2022 - 22:43
byBharat Govind Gautam
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The Russian-flagged oil tanker Pegas at a port in Marmara Ereglisi, western Turkey, in January 16 2022. Picture: REUTERS/YORUK ISIK
Oil tankers formed a traffic jam off the coast of Turkey on day one of the West’s price cap on Russian crude, with Ankara insisting on new proof of insurance for all vessels, the Financial Times reported on Monday.
About 19 crude oil tankers were waiting to cross Turkish waters on Monday, the report said, citing ship brokers, oil traders and satellite tracking services.
A $60 per barrel price cap imposed by the Group of Seven (G7) nations, Australia and the EU on Russian seaborne crude oil took effect on Monday, the latest Western measure to punish Moscow over its invasion of Ukraine.
The agreement allows Russian oil to be shipped to third-party countries using tankers from G7 and EU member states, insurance companies and credit institutions only if the cargo is bought at or below the cap.
Russia said on Monday that a Western price cap on its oil would destabilise global energy markets but would not affect its ability to sustain what it calls its “special military operation” in Ukraine.
According to the Financial Times’s report, four oil industry executives said Turkey had demanded new proof of full insurance coverage for any vessels navigating its straits in light of the measures.
Turkey’s ministry of transport and infrastructure did not immediately respond to a Reuters request for comment.
The vessels had dropped anchor near the Bosphorus and Dardanelles, the two straits linking Russia’s Black Sea ports to international markets.
The first tanker arrived on November 29 and has been ever waiting since, the report quoted a ship broker who asked not to be named as saying.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil tanker traffic jam off Turkey as price cap on Russian crude kicks in
Ankara is demanding confirmation of insurance cover
Oil tankers formed a traffic jam off the coast of Turkey on day one of the West’s price cap on Russian crude, with Ankara insisting on new proof of insurance for all vessels, the Financial Times reported on Monday.
About 19 crude oil tankers were waiting to cross Turkish waters on Monday, the report said, citing ship brokers, oil traders and satellite tracking services.
A $60 per barrel price cap imposed by the Group of Seven (G7) nations, Australia and the EU on Russian seaborne crude oil took effect on Monday, the latest Western measure to punish Moscow over its invasion of Ukraine.
The agreement allows Russian oil to be shipped to third-party countries using tankers from G7 and EU member states, insurance companies and credit institutions only if the cargo is bought at or below the cap.
Russia said on Monday that a Western price cap on its oil would destabilise global energy markets but would not affect its ability to sustain what it calls its “special military operation” in Ukraine.
According to the Financial Times’s report, four oil industry executives said Turkey had demanded new proof of full insurance coverage for any vessels navigating its straits in light of the measures.
Turkey’s ministry of transport and infrastructure did not immediately respond to a Reuters request for comment.
The vessels had dropped anchor near the Bosphorus and Dardanelles, the two straits linking Russia’s Black Sea ports to international markets.
The first tanker arrived on November 29 and has been ever waiting since, the report quoted a ship broker who asked not to be named as saying.
Reuters
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