Lloyd's insurance market and UN negotiate insurance for Ukrainian grain transportation
Lloyd's of London is in talks with the United Nations about insurance coverage for Ukrainian grain shipments if a new agreement on the Black Sea Grain Initiative is reached.
Source: John Neal, CEO of Lloyd's of London, to Reuters
Quote: "Are we happy and able to continue to provide insurances in the event that a corridor can be re-operated and can be re-established? The answer to that is yes. We are in active discussions with the UN about how that might happen."
Details: Neal added that these conversations include the possibility that insurance coverage may need to be structured differently than before.
The provision of insurance is crucial for cargo leaving Ukraine.
"Absent UN intervention and UN clearance, we would not sanction the insurance," said Neal.
The Lloyd's insurance market estimates that the losses from the war in Ukraine, net of reinsurance, amount to US$2 billion.
Background: Ukraine has submitted a proposal to Türkiye to resume the grain corridor without Russia, as there are no restrictions for vessels passing through the corridor in the territorial waters of Romania, Bulgaria, and Türkiye.
Russia refused to participate in the grain deal on 17 July. Russia had been sabotaging the corridor's operation in the Black Sea for several months before that.
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