All sea waters of Russia have been declared a "war zone" by London insurers. Perhaps the difficulty of trade of the Russian Federation with most of the world powers.
This decision greatly complicates the trade of the Russian Federation with most of the world powers. According to Reuters, on April 4, 2022, the London Marine Insurance Market decided to assign the status of a "war zone" to the entire territory of Russia. We are talking not only about the Black Sea ports, but also about the Far East and the Baltic.
London Marine Insurance Market is the London Marine Insurance Market. It now occupies a leading market position in the global commercial marine insurance market, accounting for approximately one third of all insurance contracts. The market originated in the 17th century, and now, by the right of precedence, it determines the rules (conditions of standard contracts, insurance premiums, etc.) for other major insurers. Therefore, we should soon expect similar decisions from them, first of all, here we mean insurance companies and the markets of Bermuda and Switzerland.
If a maritime area receives such a status, entry into it will require prior notification of the insurer and the payment of a special insurance premium. The premium can reach up to 5% of the cost of a merchant vessel. If we accept as a rule that a typical ship costs about 30 million dollars, the size of the "war premium" can be up to 1.5 million dollars. To justify the payment of such an amount in order to benefit and not lose money, only loading the ship with very expensive goods can, for many ship owners, calling at Russian ports will simply become unprofitable.
In the London market, mainly owners of commercial sea transport from rich countries are insured. It is reported that there are already difficulties in finding those willing to call at Russian ports to buy grain. So far, this decision cannot lead to a complete stoppage of trade, but it will significantly complicate it and make it impossible with a large number of countries. It will also affect the Russian economy not in the best way, because it is highly dependent on trade through seaports in oil and grain.
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