Western officials have been in discussions with Turkish counterparts to solve oil tanker lines off Turkey. This is after G7 and EU imposed new restrictions Dec. 5, which were aimed at Russian oil exports.
According to Reuters, the official said that the U.K., U.S. and EU were working together with Turkey’s government as well as the shipping and insurance industry in order to resolve the issue of oil price caps.
There is no reason why ships should be prevented from accessing the Bosporus Straits because of safety or environmental concerns.
Australia, Australia, and the European Union have all agreed not to allow shipping companies like insurance to export Russian oil, unless that price is set at a cap. This was done to deprive Moscow from wartime revenues.
However, another Turkish law has been in effect since the beginning of the month. It requires vessels to show proof that they have coverage for the Bosphorus Strait transit or Turkish port calls.
As operators try to comply with the Turkish rules, at least 20 oil tankers are still experiencing delays crossing from Russia’s Black Sea ports into the Mediterranean.
In a phone call Wednesday, Wally Adeyemo (U.S. Deputy Treasury Secret) told Sedat Onal, Turkish Deputy Foreign Ministry that the Russian price cap does not apply to Turkish oil. This did not require additional inspections of ships transiting through Turkish waters.
Russia is worried about tanker buildup, and has been discussing it with transport and insurance companies, RIA reported.
Grushko stated, “If the problem cannot be solved, then of course there will also be involvement at the political level.”
UK P&I Club, a British ship insurance company, stated that Turkish requirements for an insurance letter may force them into violating sanctions. This could happen if the Turkish oil cargoes are sold beyond the price limit.
UK P&I stated in a statement that “The (insurers), have agreed that such a letter cannot and should never be issued,” via its website.
It stated that “issuing a confirmation letter in these circumstances would expose Club to a violation of sanctions under EU. UK. and U.S law.” This refers to an instance where insured cargoes fall foul of new regulations.
Officials from Australia and the Coalition of G7 Countries stated that the delay was not due to the price cap. They also claimed that most of the affected cargoes were made up of Kazakh oil which is exempt from the measure.