Since November 2023, insurance premiums have increased dramatically due to the heightened risk of war in the Black Sea region. In comparison, premiums in the Red Sea amount to only 0.5 to 0.7 percent of a ship’s value, while in the Black Sea, they can be as high as three percent. Lloyd’s of London has listed the Black Sea region as a high-risk area due to its proximity to Russia’s sphere of influence and its potential for security policy disasters.
Despite these concerns, a project in the Black Sea is being promoted as a step towards independence from Russian gas. According to Greenpeace science expert Stefan Stadler, last Friday, OMV/Petrom and Romgaz received preliminary approval for the project during an environmental impact assessment. The assessment evaluated risks such as earthquakes and external influences but did not find any evidence of sea mines or unexploded ordnance. However, there is still concern about unexploded ordnance triggering an environmental disaster.
Russia conducted military exercises in the Bulgarian economic zone of the Black Sea in July and August 2023, which raised concerns among defense minister Todor Tagarev about their potential impact on construction and exploration work in the region. Greenpeace warns that there are specific risks associated with building and construction activities during this phase of the project, as well as during drilling platform and pipeline operations.
To address these risks, Romania, Bulgaria, and Turkey have established a task force for security in the Black Sea early next year. The Romanian Ministry of Defense stated that they are working urgently to make this initiative operational to counteract drifting sea mines’ danger posed by them. OMV Petrom, which is behind the project, closely monitors geopolitical situations and has not interrupted its activities in the Black Sea due to war concerns. The company employs a dedicated risk management system and is insured against such risks.
While some local media outlets criticize Neptun Deep project without providing any constructive criticism or alternative solutions for energy independence from Russian gas.
Greenpeace dismisses their warnings as alarmism that benefits Russia and Gazprom.
The project continues to move forward with support from OMV Petrom and Romgaz as well as government authorities.
It remains uncertain how security conditions will evolve and impact this project moving forward.
In conclusion, insurance premiums have increased sharply since November 2023 due to heightened tensions between Russia and Ukraine over territorial disputes in eastern Europe; however it’s important to note that insurance rates are determined by various factors like risk assessments by companies like Lloyd’s of London among others.
