Marine insurance group seeks clarity on legality of Russian bunkers
It is unclear whether sales of Russian-origin bunkers will be subject to the recent price cap imposed by the G7 coalition, the International Group of P&I Clubs (IGP&I) said.
PHOTO: Maersk Line container ship moored quayside at the Port of Felixstowe in Suffolk, England. Getty Images
Shipowners and charterers that seek to stem Russian-origin bunkers in Russian or third-country ports should first enquire with local authorities about the bunkers' legality and compliance with sanction rules, IGP&I says in a circular.
On 5 February, the G7 coalition – which includes the EU and Australia imposed two price caps of $100/bbl and $45/bbl on Russian refined products.
The higher cap ($100/bbl) will apply to products such as diesel, gasoil and vacuum gasoil (VGO), which typically trade at a premium to crude. While the lower cap ($45/bbl) will apply to products like residual fuel oil, which typically trade at a discount to crude.
IGP&I is uncertain as to whether the price cap will be applicable to sales of bunker fuels of Russian origin. Nevertheless, some of these products such as gasoil, VGOs and residual fuel used for bunker fuel production, are subject to price caps.
It is currently seeking clarity from EU and UK authorities if bunker fuels would fall under the price cap.
IGP&I is a group consisting of 13 Protection and Indemnity (P&I) clubs, that provides maritime insurance to about 90% of the world’s ocean-going tonnage.
By Nithin Chandran
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