Britain seeks delay to EU's Iran ship insurance ban
Reuters / Dmitry Zhdannikov & Justyna Pawlak
08-May-2012

Britain is seeking to persuade fellow European Union members to postpone by up to six months a ban on providing insurance for tankers carrying Iranian oil, arguing that it could lead to a damaging spike in oil prices, European diplomats said. A European Union ban on importing Iranian oil, which takes effect on July 1, will also prevent EU insurers and reinsurers from covering tankers carrying Iranian crude anywhere in the world from July. The impact of the measure is likely to be felt strongly in London's financial district, the centre for marine insurance. Iran exports most of its 2 million barrels of oil per day to Asia. The four main buyers - China, India, Japan and South Korea - have yet to find a way to replace the predominantly Western insurance shipping cover provided by London insurers. The sanctions seek to stem the flow of petrodollars to Tehran to force it to halt a nuclear programme that the West suspects is intended to produce weapons. Some Indian and Chinese firms have already asked state insurers to step in and provide coverage by offering government guarantees. . The situation is more complicated for Japan and South Korea, which have already cut imports of Iranian oil under pressure from Washington, but need Western protection and indemnity (P&I) ship insurance to continue importing the remaining volumes. "Britain will be pushing the EU to postpone the ban on P&... >>>
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