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Company Response

29 Jul 2024

Author:
West P&I Club

West P&I Club response

"...The stated twin aims of the G7 Coalition’s Price Cap Scheme are “to deprive the Russian Federation of the revenue it uses to wage its unjust war against Ukraine, while maintaining reliable supply of crude oil and petroleum products to global markets”...

When undertaking these trades both insurers and shipowners are deemed to be Tier 3 actors since they typically have no access whatsoever to information relating to the purchase price of any particular cargo. The price cap mechanism allows Tier 3 actors to rely on attestations that the cargo being carried was purchased at below cap prices.

If it transpires that an attestation is inaccurate or there is any other sanctionable activity then insurance cover for the voyage concerned ceases automatically and in its entirety. It would therefore be incorrect to suggest that West provides cover for any tanker carrying above cap price cargoes; that is not the case and there is no cover whatsoever for any such activities. West does not provide cover for sanctionable activity.

West is a not for profit mutual insurance association. There is consequently no financial motive to be derived from covering trade to Russia but we provide cover for risks such as oil pollution, wreck removal and injury and loss of life for lawful trades worldwide. West abides by all sanctions regimes and has robust compliance policies in place to ensure that Members comply with applicable sanctions regimes"

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