Ankara says will continue to request insurance data from oil tankers
Ankara says the maritime traffic in Bosporus is caused by the refusal of EU companies to provide insurance to oil tankers.
The Turkish Maritime Authority accused on Thursday EU companies of refusing to provide insurance documents for the passage of oil tankers through the Black Sea Straits and declared the unacceptability of applying pressure on Ankara.
The Financial Times newspaper reported a couple of days ago, citing oil traders, that a traffic jam from oil tankers formed off the coast of Turkey after Ankara introduced restrictions on oil prices from Russia due to requirements to provide insurance data.
"Insurance companies refuse to issue such letters, which are issued on a routine basis," the Turkish Maritime Authority indicated in a statement.
The Turkish authorities noted that it will continue to require insurance documents.
On December 1, Turkey started requesting from oil shippers crossing the Bosphorus Strait and the Dardanelles a letter from an insurer confirming that the vessel is covered by the necessary Protection and Indemnity Insurance (P&I).
P&I Clubs explained in a statement that it was not possible to guarantee cover in the case of a sanctions breach.
The Financial Times quoted Nick Shaw, the group’s chief executive, that P&I Clubs was in "ongoing constructive discussions with the relevant authorities to try and resolve the situation."
On Monday, media reported that some 19 oil tankers were stuck in the Turkish straits following new restrictions that had gone into effect as part of the collective West's price cap on Russian oil.
WH closely monitoring oil tanker backlog in Turkey caused by price cap
Commenting on the latest events, White House National Economic Council Director, Brian Deese, said the US is "closely monitoring" the jam of oil tankers in Turkish waters.
"We're closely monitoring the situation but I think it's too early to make any judgments," Deese said following a question about the effect of the tanker's backlog on global oil supply.
The Director claimed that it is not expected that the newly introduced price cap would impact the global oil market.
Under EU the price cap decision on Russian oil that took off on Monday, tankers loading Russian crude oil are barred from accessing Western maritime insurance unless the oil is sold under the G7’s price cap of $60 a barrel.
Kremlin Spokesperson Dmitry Peskov said Saturday that the price cap that was imposed on Russian oil abroad is unacceptable for Russia, but Moscow will be analyzing it and deciding how to operate under the new circumstances.
Western nations have been trying to find ways to reduce Russia's income from oil and gas exports since the start of the war in Ukraine.
Russia had pledged to stop exporting its oil to countries that would apply price caps on its oil.
Meanwhile, those who violate the price cap on Russian oil exports will suffer consequences under the domestic law of the jurisdictions enforcing the quota, according to US Deputy Treasury Secretary, Wally Adeyemo.