Chinese authorities and companies have refused to recognize Russian insurance certificates required to export Russian oil via tankers. Without the recognition of insurance documents, the supply of oil to China is impossible. Deputy Minister of Transport Alexander Poshivay spoke about problems with the recognition of insurance certificates during the Russian-Chinese energy business forum, his words are quoted by RIA Novosti.
“Russian shipowners are facing refusals from the Chinese authorities and companies regarding the recognition of insurance documents for ships and cargoes issued by the above-mentioned insurance companies,” he said.
Poshiwai expressed the hope that Beijing and local companies will change their position on this issue and still begin to recognize insurance documents from Russian companies. Russian authorities have repeatedly expressed skepticism about the prospects for Western sanctions on Russian oil, President Vladimir Putin and lower-ranking officials have intimidated that the world oil market will face a sharp shortage of energy products, which will lead to a sharp increase in energy prices. Moreover, Moscow refuses to supply oil to countries inclined to join the oil cap mechanism, which should come into operation from December 5 if the EU manages to agree on all the details.
In addition to the price cap mechanism, a ban on the provision of financial, insurance and shipping services to Russian companies in cases where the price of Russian oil exceeded the ceiling set by the Western coalition will also work from December 5. These services are mainly provided by Western companies from the US, UK, Switzerland and Europe. Thus, Russia will actually lose the opportunity to insure ships with oil, which is a necessary condition for the safe transportation of goods by sea.
China's refusal to recognize Russian insurance certificates jeopardizes oil supplies to China, which is currently one of the largest buyers of Russian energy resources – refusal to recognize documents threatens all oil exports to China.
