Japanese companies to continue shipping insurance in Russian waters

Kyodo Agency reported Japanese companies extended the insurance period for ships in Russian waters. 

Earlier, the media noted that Japan was about to refuse providing insurance services to marine vessels in waters around Russia. In this case, it could have affected the supply of LNG from the Russian project Sakhalin-2, where Japan takes part. On December 23 Japanese insurers Tokio Marine & Nichido Fire Insurance Co, Sompo Japan Insurance Co and Mitsui Sumitomo Insurance Co, had already started sending notifications to their customers.

However, in case of an LNG tanker accident further uninsured fuel transportation would be impossible — the losses would be enormous. Therefore, on December 27 the government of Japan asked insurance companies to continue to insure ships carrying liquefied natural gas (LNG) around Russia. After some negotiations, the parties signed a prolonged contract for January 2023.