Japanese Companies To Further Insure Vessels In Russian Waters In January - Reports

TOKYO (UrduPoint News / Sputnik - 29th December, 2022) Japanese insurance companies will continue to insure vessels in Russian waters in January despite previous reluctance, Japanese media reported on Thursday.

Earlier in the month, media reported that, starting January 1, 2023, ships will not be insured from damage received in a possible military conflicts in waters around Russia and Ukraine, which reportedly could affect LNG supplies under the Russian project "Sakhalin-2," in which Japan takes part.� Three Japanese insurance companies, Tokio Marine&Nichido Fire Insurance Co, Sompo Japan Insurance Co and Mitsui Sumitomo Insurance Co, started sending relevant notices to their clients on December 23.

However, since damage received by a LNG tanker can inflict multimillion losses, transportation without insurance will become effectively impossible. According to Kyodo news, in this context, the Japanese government contacted the companies on December 27, asking them to resume providing insurance for vessels carrying LNG. As the result of these talks, the companies have agreed to continue to insure cargo ships in January 2023.