Report: Japan to stop insuring ships in Russian waters from war

TOKYO, Dec 26 (PRIME) -- The Japanese companies will stop insuring ships in all waters around Russia and Ukraine against a possible damage inflicted during military confrontations starting from January 1, 2023, Japanese daily Nikkei reported on December 24.

Previously, the ships that wanted to sail through all waters around Russia and Ukraine, including the Northern Sea Route, were to have an insurance against military warfare that was to be signed separately from the main insurance contract. But Japanese insurers Tokio Marine&Nichido Fire Insurance Co, Sompo Japan Insurance Co, and Mitsui Sumitomo Insurance Co sent notifications on December 23 that they would suspend the warfare insurance from January 1, Nikkei reported.

The lack of this insurance could threaten Japan’s imports of liquefied natural gas (LNG) from the Sakhalin-2 project. It is also possible that the insurance companies would discuss the situation with reinsurers, the daily reported.

The Russian government established Sakhalinskaya Energiya LLC as a new operator of the Sakhalin-2 project on August 19 because of unfriendly actions of some foreign countries. Russian gas giant Gazprom owned 50% plus one share in the previous operator, British-Dutch hydrocarbon giant Shell had 27.5% minus one share, and Japan’s Mitsui and Mitsubishi had the stakes of 12.5% and 10%, respectively.

The government allowed all the companies to receive the same stakes in the new operator. Shell said on September 1 that it would not participate in the new operator.

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