EMEA News
Insurance Providers 'Not Clear' on Whether Russian Price Cap Applies to Bunkers
The insurance industry is waiting for answers on whether the new price cap on Russian refined product exports will be applied to delivered bunker fuel.
The European Union, G7 countries and Australia imposed a price cap on Russian refined exports on February 5, having imposed similar restrictions on crude exports on December 5.
A cap of $45/bl was set for products like fuel oil that typically trade at a discount to crude, and one of $100/bl for products that command a premium.
But in a circular to members last week the International Group of P&I Clubs said it was not yet clear how bunkers taken on board vessels in fuel tanks -- rather than as cargo -- would be treated under the new rules.
"Owner and charterer members that are looking to stem bunkers are recommended to seek clarification on the legality of stemming Russian origin bunker fuel in Russia or elsewhere," the organisation said in the circular.
"The current situation in regard to EU and UK Regulations and Guidance is not entirely clear, especially since the types of product which typically comprise ships' bunkers would fall under a CN 2710 code and consequently be subject to the price caps.
"The IG is currently seeking clarification from the relevant regulatory authorities and further guidance will be provided in due course."
