Environmental risks are an integral part of Russia’s deterrence policy, according to Russian environmental policy professor Veli-Pekka Tynkkynen. The inadequate insurance of tankers transporting Russian oil poses a risk that Finland could be left with the bill in case of an oil spill in the Gulf of Finland involving such vessels.
The Financial Times reported that several tankers carrying Russian oil evading sanctions lack insurance coverage for potential oil spills. These ships rely on insurance policies that can be easily canceled in case of accidents, raising concerns about Russia’s shadow fleet. Professor Tynkkynen highlighted the environmental risks posed by these old ships and the potential invalidity of their insurance coverage. Tankers require insurance to enter ports worldwide, and some of the ships in the shadow fleet are insured by the Russian company Ingosstrah, with clauses avoiding coverage for sanctions evasion.
Western countries imposed a price ceiling of $60 per barrel for Russian crude oil transported by sea in 2022. This led to the creation of a “shadow fleet” of tankers that bypassed the price ceiling using financing and insurance from non-Western countries. Professor Tynkkynen pointed out that Russia’s insufficient insurance coverage for its tankers reflects a longstanding pattern of shifting environmental responsibility to the West, according to him. The country has historically relied on Western actors to cover costs related to environmental issues, including nuclear safety.
Russia’s approach to environmental risks is seen as part of its deterrence policy, deflecting blame to the West in case of disasters and portraying itself as limited in environmentally friendly oil production due to sanctions. Amidst ongoing conflict between Russia and Ukraine, Russia has increased its crude oil exports to China and India, highlighting the need for these countries to address potential environmental risks from the shadow fleet.
Russia’s insufficient insurance coverage for its tankers is just one example of how it shifts responsibility onto Western actors when it comes to environmental issues. It is important for countries importing Russian oil to address these risks and ensure they are not left holding the bill if something goes wrong with one of Russia’s old ships carrying crude oil through their waters.
