EU loosens restrictions on Russian coal Will the next one be oil?

The European Union issued new guidance this week, saying it now allows the transfer of Russian coal and fertilizers to countries outside the EU citing energy security concerns
.
This comes after an intervention in August surprised insurers and shipowners as the European Union said it would completely ban Russian coal shipments
.
This has left the insurance and shipping markets unsure whether key parts of EU sanctions on Russian oil could also be eased
.

The easing of coal sanctions could be important for oil, as the EU has already imposed similar measures on both that won't take effect
until December and February next year, respectively.

The United States fears that European measures — including banning the provision of insurance, which is essential for trade — could push up oil prices
.
The U.
S.
is trying to get G-7 countries to support Russia's oil price cap to give businesses access to these critical energy sources
.

Mike Salthouse, global claims director of the P&I Association of Northern England Ltd.
, said of the shift in coal policy that "it will be very difficult
for industry if they impose oil sanctions and price caps in the same way.
" "The point of effective sanctions that everyone understands and can comply with is that they must be consistent and clear
.
" This is by no means the EU's position on coal and fertilizers
.
”

Salthouse is also the chair of the International P&I Association Group Sanctions Committee, a member of which covers 95% of the world's tankers to deal with risks
, including oil spills.

Average crude oil shipments from Russia over the past 4 weeks by destination

Salthouse said the shift in coal sanctions has created greater uncertainty
for shipowners and their insurers.
"This time last week, they made it clear that it was illegal, but this week is different again
.
"

When the European Commission made adjustments to coal, it still stipulated that "insurance and financing for oil transportation, especially oil transported
to third countries by sea.
" "It is forbidden to provide insurance and funds
for the transport of oil to third countries, especially by sea.
"

Different sanctions methods

The United States, the United Kingdom, and the European Union all have different approaches to Russia's oil sanctions
.

The EU has put in place measures, including a ban on insurance and services
for the delivery of crude oil to third countries.

At least for now, the UK only prohibits the insurance of oil cargoes
destined for its own coast.

At the same time, the United States is pushing G-7 countries to support its oil price cap plan
.
Under the U.
S.
program, those who pay the capped price will receive EU insurance and other key services
.

Salthouse said that while their policies are likely to become more coordinated, Europe's focus on coal has left insurers worried about a lack of clarity in the government
.