Insurers reviewing Black Sea deals after Russia pulls out of grain agreement- Reuters

Insurers are reviewing cover for ships heading to Ukraine through the Black Sea after Russia’s withdrawal from the grain deal, Reuters reports.

Per the agency’s sources, international insurance companies are considering freezing insurance policies for vessels sailing to Ukraine.

The grain deal previously allowed for the safe export of grain through the Black Sea.

Christian Vinther Christensen, chief operating officer with Danish shipping group NORDEN, said most shipowners “will now refrain from calling Ukrainian ports”.

While until now, insurance was key to securing supplies through the Black Sea corridor, insurance companies are now looking into Moscow’s decision in terms of whether to continue to provide some cover.

Some insurers could try to take an advantage by significantly raising the prices for vessels bound for Ukraine, an industry source told Reuters, while others may stop providing cover altogether.

In particular, Lloyd's of London insurance market has already put the Black Sea region on its high-risk list.

Neil Roberts, head of marine and aviation at Lloyd's Market Association, said that annual cover remains in place but “voyages to listed areas will be considered individually as and when seen”.

This means that insurers may seek individual risk analysis before providing cover for vessels travelling to the Black Sea region after Russia’s withdrawal from the grain deal.

On 17 July, Russia officially announced its pulling out of the grain deal.

The Russian foreign ministry said it means "the absence of guarantees of safety of navigation and the closure of the humanitarian corridor in the northwestern part of the Black Sea".

Following Russia's announcement, global wheat prices immediately rose by almost seven percent.