According to the report, almost 75% of all seaborne Russian crude flows traveled without western insurance in August, the only lever used to enforce the G7’s $60-a-barrel oil price cap....
Is there some reason why no entity in Russia, or some country friendly to Russia, can provide insurance? Last I heard, BRICS accounted for 40% of global GDP and that number was rising.
And why could the Russian government not simply insure transport directly, if it deemed that desireable? The US government seems to finance and backstop half the things that go on in the US and other vassal states.
Is there some reason why no entity in Russia, or some country friendly to Russia, can provide insurance?
Really, there is a hole in maritime law exploited. According to the law, any port obliged to service any vessel under flag of some state if it is inshured by a company registered in that state with funds above some level and backed by that state. So, there was created insurance company with necessary sum and officially backed by RF government. Now, no port could deny a Russian vessel insured by that company. Also, no Russian vessels need any Lloyd's or any other western insurance anymore. That simple.
Funny, many countries get that trick to the mind. There was some hours of hystery and whining at Lloyd's and other "trusted" insurers, but then they suddenly go silent, looks like they turned to creating conspiracy for changing maritime law to close that "unfair" hole in it.
PS: Guess why MSM do not tell how exactly Russia fucked that stupid western insurance sanctions and pretend to be puzzled how we still able to use our fleet for import and export. :)
Ah, okay, thanks for that. It's along the lines of what I suspected. And it's another variant of the same old psychological trickery.
They never say, "Okay everyone, here are the rules. You can read them for yourself and see that if someone does this or does not do that, they are in violation of the rules we all agreed to go by."
Instead it's, "What the hell are we going to do about these rule-breakers?!" Everyone subconsciously fills in the parts that aren't actually there.
You have to give them credit, it's subtle and effective.
I took a closer look at how that insurance trick was done. It is fascinating. There is reinsurance company РНПК (Russian National Reinsurance Company). This company have a single founder and owner - take a breath, it is funny ... - Central Bank of Russia. To fulfill the conditions of the maritime law, paid authorized capital was set by founder at 750B RUB - above whatever limit set in maritime law for state-backed insurers. In addition, Russian government signed a backing of that company. Since the founder is CB, this company capital is really unlimited. CB could set it to any value. So, just changing limit in maritime law would not help. They will have to completely remove the whole part about insurance by state backed company with unpredictable consequences. Also, it would be extremely hard to somehow deny validity and capital of the company founded by CB, it will severely harm Central Banks validity as whole. If CBs is not enough to back insurance, then nothing could be enough, not even talking about some private capital. You know that worship of CBs among political establishment - CBs are untoucheable and unquestionable. :)
Seems like London insurance cabal fucked around and found out. If they want to mitigate their losses, they will have to face that dark, nameless and scary CB owners. :)
Okay, okay, new plan by the Neo-Imperialists: "These sanctions are working great! The Russian economy is imploding! And that's why you're paying more for gas."
Is there some reason why no entity in Russia, or some country friendly to Russia, can provide insurance? Last I heard, BRICS accounted for 40% of global GDP and that number was rising.
And why could the Russian government not simply insure transport directly, if it deemed that desireable? The US government seems to finance and backstop half the things that go on in the US and other vassal states.
Really, there is a hole in maritime law exploited. According to the law, any port obliged to service any vessel under flag of some state if it is inshured by a company registered in that state with funds above some level and backed by that state. So, there was created insurance company with necessary sum and officially backed by RF government. Now, no port could deny a Russian vessel insured by that company. Also, no Russian vessels need any Lloyd's or any other western insurance anymore. That simple.
Funny, many countries get that trick to the mind. There was some hours of hystery and whining at Lloyd's and other "trusted" insurers, but then they suddenly go silent, looks like they turned to creating conspiracy for changing maritime law to close that "unfair" hole in it.
PS: Guess why MSM do not tell how exactly Russia fucked that stupid western insurance sanctions and pretend to be puzzled how we still able to use our fleet for import and export. :)
Ah, okay, thanks for that. It's along the lines of what I suspected. And it's another variant of the same old psychological trickery.
They never say, "Okay everyone, here are the rules. You can read them for yourself and see that if someone does this or does not do that, they are in violation of the rules we all agreed to go by."
Instead it's, "What the hell are we going to do about these rule-breakers?!" Everyone subconsciously fills in the parts that aren't actually there.
You have to give them credit, it's subtle and effective.
I took a closer look at how that insurance trick was done. It is fascinating. There is reinsurance company РНПК (Russian National Reinsurance Company). This company have a single founder and owner - take a breath, it is funny ... - Central Bank of Russia. To fulfill the conditions of the maritime law, paid authorized capital was set by founder at 750B RUB - above whatever limit set in maritime law for state-backed insurers. In addition, Russian government signed a backing of that company. Since the founder is CB, this company capital is really unlimited. CB could set it to any value. So, just changing limit in maritime law would not help. They will have to completely remove the whole part about insurance by state backed company with unpredictable consequences. Also, it would be extremely hard to somehow deny validity and capital of the company founded by CB, it will severely harm Central Banks validity as whole. If CBs is not enough to back insurance, then nothing could be enough, not even talking about some private capital. You know that worship of CBs among political establishment - CBs are untoucheable and unquestionable. :)
Seems like London insurance cabal fucked around and found out. If they want to mitigate their losses, they will have to face that dark, nameless and scary CB owners. :)
Okay, okay, new plan by the Neo-Imperialists: "These sanctions are working great! The Russian economy is imploding! And that's why you're paying more for gas."