The largest insurance market is closed for the Russian companies

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The UK prohibits Russian companies from insuring in London. The UK insurance market is the largest in the world for companies, especially in the aviation and space sectors. These companies will no longer have access to (re)insurance, both directly and indirectly, the British government reports on Thursday.

“We are going to prohibit British Insurers or reinsurers from carrying out financial transactions with companies that are Russian or have ties to Russian companies,” the UK Finance Ministry says. “More details about the legislation will be known later.”When the legislation goes into effect is not yet clear.

The action isolates Russia, combined with the sanctions of the European Union and the United States, even more from the international scene. A lot of companies from Russia, but also elsewhere in the world, insure themselves in London for commercial or very specialist matters.

On Wednesday, the EU also decided to exclude seven Russian banks from the international payment system SWIFT. As a result, it becomes much more difficult for Russia to make international transfers, which has a huge impact on foreign trade with the country.

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Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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