Russian government bans majority of foreign re/insurance transactions
Vladimir Putin signs law in retaliation for sanctions
Russia’s president, Vladimir Putin, has signed a law prohibiting insurers in the country from completing transactions with insurers, reinsurers and broker firms from a list of “unfriendly” states.
This ban also applies to the transfer of funds by Russian insurers under contracts concluded before the date the new law comes into effect.
In exceptional cases, transfers to foreign reinsurers, insurance brokers from unfriendly countries are possible on the basis of a permit issued by the Central Bank of the Russian Federation.
The move is in retaliation for a wide range of sanctions against Russia from Western and other countries due to the Russian invasion of Ukraine, including on the provision of insurance. For instance, the UK government has given UK-based aviation and space re/insurers until March 28 to divest themselves of any Russian coverage they are writing.
Earlier this month the Russian Government published a list of those states it regards as unfriendly. They include the US and Canada, the EU, the UK, Ukraine, Montenegro, Switzerland, Albania, Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, North Macedonia, and also Japan, South Korea, Australia, Micronesia, New Zealand, Singapore and Taiwan.
A wide range of Western re/insurers and brokers have announced they are withdrawing from Russia, either no longer writing business there or placing their subsidiaries in the country under local control, including Aon, WTW, Marsh McLennan and Generali.