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EU insurers prohibited from insuring any oil shipments from Syria
On 5th September, the Club posted an advisory regarding extended European sanctions to prohibit the transport, by EU persons or vessels, of crude oil or petroleum products from Syria, and to prohibit the provision of insurance in respect of such transportation.
The Club requested clarification from HM Treasury as to whether the insurance ban would apply to shipments from Syria by vessels and persons that are unconnected with the EU.
The UK Treasury has now confirmed that it considers that insurers/reinsurers in the EU are prohibited from providing cover in relation such shipments, even where the transportation ban does not apply (because the ships and persons involved are unconnected with the EU).
Attention is drawn to the Association's Rule 5 V:
"The Association shall not indemnify an Owner against any liabilities, costs or expenses where the provision of cover, the payment of any claim or the provision of any benefit in respect of those liabilities, costs or expenses may expose the Association to any sanction, prohibition, restriction or adverse action by any competent authority or government."
Members should therefore be aware that if they carry Syrian oil exports, their cover from the Club will be prejudiced whether or not the ships and persons involved have any connection with the EU.