“It is currently on pause,” said David Roe, head of UK cargo at Marsh, which acted as the facility’s broker
LONDON:
A cargo insurance facility providing cover for Ukraine grain shipments via a safe sea corridor has been suspended after Russia quit the United Nations-backed agreement, broker Marsh said on Tuesday.
Moscow has withdrawn from the year-old grain export deal in a move the United Nations said risked creating hunger around the world.
The marine cargo and war facility led by Lloyd’s of London insurer Ascot, together with other underwriters, provided cover of up to $50 million per cargo.
“It is currently on pause,” said David Roe, head of UK cargo at Marsh, which acted as the facility’s broker.
“It is suspended effectively due to the agreement not being extended. Without the corridor being in place, there is a greater degree of uncertainty attached to the risk.”
Ascot declined to comment.
Insurance has been vital to ensure shipments through the corridor.
Russia struck Ukrainian ports on Tuesday, and the Kremlin warned that attempts to ship grain from Ukrainian Black Sea terminals without security guarantees from Moscow would carry risks because Kyiv used those waters for military activities.