Initial reports reported that a blockade of oil tankers emerged earlier in the week in the Bosphorus, off the coast of Turkey. The Financial Times reported on December 5 that 19 ships were stuck in traffic.
The newspaper said, “After Western powers imposed a ‘price ceiling’ on Russian oil and Ankara authorities asked insurers to promise that all ships passing through their straits would be fully insured, oil tankers had a traffic jam in Turkish territorial waters.” .
According to the FT, Ankara requested proof of the ship’s insurance. EU and G7 sanctions, which came into effect on Monday, prohibit, among other things, tankers carrying raw materials from Russia from receiving marine insurance unless the oil they fill sells at a maximum of $60 per barrel.
According to the newspaper, Ankara has requested written confirmation from all tankers carrying crude oil that in an emergency, insurance will cover oil spills or other accidents. However, P&I Clubs, an international group representing 13 insurance companies that provide liability coverage for nearly 90% of global shipping, said Turkey’s demand goes “far beyond” the general information normally required.
Ships anchored in the Bosphorus and Dardanelles Straits connect Russia’s Black Sea ports with international ports. At the same time, according to the FT, the first tanker reached the strait on November 29, almost a week before the new restrictions took effect.
The publication also says that traffic jams from oil tankers indicate that sanctions on Russian crude will cause disruptions to global oil supply.
On 6 December, information emerged that Russian tankers were among the ships stranded in the Bosphorus. We are talking about the ships “Kapitan Barmin”, “General Skobelev”, “Lady Maria”, “Lady Aria”, Caminero, Roschem 2, which could not pass the strait from the Black Sea. According to the Marinetraffic service, which monitors the movements of the ships, most of the tankers stuck in traffic are Turkish.
On Wednesday, December 7, the Russian Foreign Ministry expressed its concerns about traffic jams. According to Deputy Foreign Minister Alexander Glushko, Moscow is discussing the situation from the point of view of transport and insurance companies. According to him, the state will have to intervene if the problem is not resolved at the current level.
Deputy Prime Minister Alexander Novak, who oversees the energy industry, said that Russia will start using new plans to secure raw material supplies after Western countries have imposed a ceiling on oil prices.
According to Bloomberg, at least 18 million barrels of oil had accumulated in tankers stranded off the coast of Turkey on the evening of December 6 (that’s about one-fifth of daily world oil production – socialbites.ca). As the agency reported, 19 out of 20 ships carry cargo from Kazakhstan.
At the same time, Magzum Mirzagaliyev, chairman of the Kazakh national company Kazmunaigas, said that at least 10 of the jammed tankers were connected to Astana. According to him, a total of 21 tankers, six of which are Tengizchevroil oil, anchored off the Bosphorus.
Ankara’s official statement was only published on the evening of 8 December. The Turkish Ministry of Transport, General Directorate of Maritime Affairs confirmed the original version of the FT: ships whose crews refuse to present their insurance documents are not allowed to pass through the straits.
The Ministry announced strict measures with the need to protect the straits from possible disasters. They reminded that the obligation of the ship owner to present a P&I document (an insurance policy to solve problems in case of accident, environmental pollution, loss of ship or cargo, material and moral damage, etc.) has been in effect since 2002. .
Ankara also denied the media reports that more than a hundred oil ships were piling up on the country’s coasts. The Turkish Ministry of Transport said that there is no major congestion in the Bosphorus, and that 15 tankers, 11 of which go to EU countries, are anchored.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.