As more tankers waited to leave the Black Sea through Turkish Straits on Friday, Turkey became a significant roadblock to a sophisticated international scheme to deny Russia of earnings from oil sales during times of war.
Despite days of pressure from Western officials dissatisfied with the policy, Ankara has refused to reverse a new insurance inspection rule it enacted at the beginning of the month.
According to the Tribeca shipping agency, there is a line of 28 oil tankers waiting to cross the Bosporus and Dardanelles straits.
According to the Tribeca shipping agency, there is a line of 28 oil tankers waiting to cross the Bosporus and Dardanelles straits.
The G7 affluent nations, the European Union, and Australia decided to forbid shipping service providers, such insurers, from assisting with the export of Russian oil unless it is sold at a very low price, or cap, intended to deny Moscow money for the war effort.
According to Turkey’s maritime authorities, oil tankers without the proper insurance letters would still be barred from entering Turkish seas.
Western insurers claimed they could not give Turkey the paperwork it needs because doing so could subject them to sanctions if it turned out that the oil shipments they cover were sold for more than the ceiling price.The Turkish authority said that in the event of an accident involving a vessel in breach of sanctions it was possible the damage would not be covered by an international oil-spill fund.
It said that Turkey was pursuing discussions with other nations and insurance providers, saying “(it) is out of the question for us to incur the risk that the insurance firm would not fulfil its indemnification responsibility.”
Ankara’s Western friends are miffed by the fact that the vast bulk of ships waiting near the straits are EU ships, and much of the oil is headed for EU ports.
The oil and tanker markets are becoming increasingly uneasy due to the ship backlog.
Daily, millions of barrels of oil go from Russian ports to the Mediterranean across the Bosphorus and Dardanelles straits in Turkey.
KAZAKH OIL The majority of the tankers parked in the Bosphorus are carrying oil from Kazakhstan, and Treasury Secretary Janet Yellen stated on Thursday that the U.S. administration did not see any justification for subjecting such shipments to Turkey’s new regulations.
She also said that Washington had no reason to think that Russia was behind Turkey’s move to obstruct ship transits.
The European Commission stated on Friday that Turkey could continue to validate insurance policies “in the same way as before” and that the delays were unconnected to the price cap.
A spokeswoman mentioned, “We are therefore in contact with the Turkish authorities to obtain clarifications and are seeking to unblock the situation.
Since Moscow invaded its neighbour in February, Turkey has maintained a balance in its good relations with both Russia and Ukraine.
It was crucial to a July agreement backed by the UN to allow grain exports from Ukrainian Black Sea ports.
However, tensions have occasionally arisen between NATO allies Ankara and Washington as a result of Turkey’s increased demands for the US to stop supporting Syrian Kurdish fighters last month.
The Biden administration imposed sanctions on Sitki Ayan, a well-known Turkish businessman, and his network of companies on Thursday after charging him with facilitating oil sales and money laundering for the Iranian Revolutionary Guard Corps.
