Russia’s Sogaz redeems 17 bln rbl for accident at Achinsk refinery

MOSCOW, Mar 30 (PRIME) -- Russian insurer Sogaz has carried out all insurance payments for a June 2014 accident at the Achinsk Oil Refinery of oil major Rosneft, and the payments totaled 16.7 billion rubles, a representative of Sogaz told PRIME on Wednesday.

On June 15, 2014, a fire broke out at the refinery, killing eight people and injuring seven. Primary crude oil processing was restarted on September 1, 2014, and only in November of that year the plant restarted production of commercial motor fuels.

“The combined amount of insurance payments stood at 16.7 billion rubles. Risks for suspension of operating activity accounted for the major part of payments, or 13.57 billion rubles,” the representative said, adding that the main part of payments was received from international reinsurance companies.

According to Vedomosti business daily, Viktor Nikolsky, an analyst at S&P, believes that the payment is the largest one in the history of Russia’s insurance market. Yevgeny Borovikov, a department director at insurance broker Marsh, thinks that this will not hurt the financial condition of Sogaz as the company’s share in the total payment will not exceed 20%, according to the daily.

(68.7549 rubles – U.S. $1)

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