The decision could impact Tokyo’s oil and gas importsThree Japanese companies will stop providing insurance services for war damage to vessels in Russian waters, the Nikkei news outlet reports on Friday, citing unnamed sources.The decision was reportedly prompted by reinsurance companies refusing to take on risks related to the military operation in Ukraine, launched by Moscow in February.Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance have reportedly started notifying ship owners of plans to stop providing coverage for war damage anywhere in Russian waters, including the country’s Far East, which is thousands of kilometres from the conflict zone. The measure comes into effect on January 1.In September, the Group of Seven nations agreed to impose a price ceiling on exports of Russian sea-borne oil, as part of Ukraine-related sanctions. In early December, the limit was agreed upon by the G7 countries, the European Union and Australia at $60 per barrel. Under the decision, marine insurance and other services for ships are prohibited when transporting oil purchased above the set threshold. In response, Moscow pledged to ban oil sales under contracts that specify a price ceiling.Japanese companies announced plans to maintain participation in the Sakhalin-1 and Sakhalin-2 gas projects after the anti-Russia sanctions were imposed, and President Vladimir Putin gave orders to transfer the project, which was previously managed by US oil giant ExxonMobil, to a domestic entity.
This article was originally published by RT.