Final Embargo of Russian Coal

by Olha Povaliaieva
Wednesday, August 17, 2022
Final Embargo of Russian Coal

European Union sanctions prohibited the transportation of Russian coal to any part of the world

European Union sanctions against Russian coal and certain types of fertilizers, which came into effect on August 10, apply not only to its purchase but also to its transportation to any part of the world.

This was reported by the press secretary of the European Commission, Arianna Podesta, reports Bloomberg.

This restriction applies to insurance and financial services provided by companies from the European Union, regardless of the origin of the logistics company. That is, any supply and purchase involving the transportation of Russian coal and fertilizers are prohibited for companies from the EU.

"The ban on coal and certain fertilizers apply to both the 'purchase' and 'transportation' of these goods, regardless of their final destination," Podesta said.

It is noted that the insurance industry in Europe was surprised by the clarifications that came on the day the sanctions came into effect.

"If you're an EU shipowner and you've loaded Russian coal going to a non-EU third country, that's now an illegal trade," Mike Salthouse, chairman of the sanctions committee at the most significant international group, the P&I Clubs (IGP&I), told the which includes mutual maritime transport insurance clubs.

This created significant difficulties for insurers. Earlier, the industry assumed that the ban on transfers and services would not apply to export destinations outside the EU.

According to a letter from the British club to other members of the IGP&I, most of the clubs fall under EU jurisdiction. "All clubs of the group, in particular those registered outside the EU, rely on the insurance program, which is highly dependent on the participation of reinsurers from the EU," reads.

You will be interested