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Turkey and insurers reach deal to ease tanker build up

Oil Rig

Shipping insurers and Turkey have reached a deal over an issue with protection and indemnity (P&I) cover for tankers transiting Turkish waters.

Following the introduction of the EU–G7 price cap and the EU embargo on crude oil from Russia, Turkey started demanding that tankers present paperwork to prove their insurance cover before passing through the Dardanelles or the Bosphorus straits, causing a backlog of oil tankers looking to travel from the Black Sea to the Mediterranean. Most of the trapped tankers were carrying oil from Kazakhstan, where Chevron, the maker of the Texaco lubricant range, is the largest private oil producer.

A statement from Gard, a Norwegian insurer of vessels, said that after negotiation:

“…between the International Group of P&I Clubs (IG) and the Government of Turkey, an agreement has been reached allowing ships carrying crude oil cargoes to continue their voyages through Turkish-controlled waters…Members are advised to contact the Club for further information and for the documentation needed for ships carrying crude oil.”

The International Group of P&I Clubs supplies about 90% of the P&I cover around the world, with it currently refusing cover for tankers if they are holding crude oil from Russia that has been purchased for more than the maximum $60 per barrel set by the EU and G7 in an effort to limit Russia’s wartime revenue.

The Maritime Authority of Turkey later said that of the 26 tankers waiting to enter the Bosphorus, 22 had provided the necessary paperwork, with 19 of these having already passed through the strait.

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