Lloyd’s Market Association advices underwriters of poised situation in Ukraine
Russia’s announcement that it will close access to the Kerch Strait which connect the Black Sea and the Sea of Azov has triggered a reaction within the London insurance market.
The Joint War Committee of Lloyd’s Market Association has issued an advisory to the London market underwriters about the security situation in Ukraine, following a meeting in the committee on 20 April.
In the advisory, Lloyd’s Market Association informs underwriters that after assessing the situation, it considers the position to be poised but not yet critical, despite an increased risk of detention in the Black Sea.
Following the Committee meeting, it is in addition assessed that any closure of the Sea of Azov to civilian vessels – whether it be a blanket closure or prohibiting vessels with certain flags – would significantly increase the risk of prolonged detentions, according to Lloyd’s Market Association. It adds that if a closure of the Sea of Azov happens, the Committee feels it would have no choice but to designate the Sea of Azov as a Listed Area.