OIL shipments from Russia and Kazakhstan are getting ensnared in a Turkish government rule to provide proof that tankers are insured when navigating the vital Bosphorus and Dardanelles shipping straits.

The measure, which came into force last Friday, compels ships carrying crude oil to have a letter from their insurer guaranteeing cover while in Turkey’s waters. 

The requirement is a response to European Union sanctions that took effect on Monday (Dec 5), and only afford insurance for shipments that have been purchased at or below US$60 a barrel. That means it is impossible for Turkish authorities to use the conventional verification system – looking up the relevant information on insurance company websites – to determine whether ships are covered.

The London P&I Club, which provides insurance against risks including spills and collisions, said that the letters that Turkey is demanding cannot and should not be published for the time being. It cited an assessment from the International Group (IG) of protection and indemnity (P&I) clubs, of which it is a member. The IG organises cover for 95 per cent of the global tanker fleet.

The required letter applies to any tanker carrying crude oil out of the Black Sea, not just Russian oil. Kazakhstan’s Caspian Pipeline Corporation oil stream, which produces 1.5 million barrels a day, is also heavily reliant on the Bosphorus and nearby Dardanelles shipping straits to get its crude to international markets.

Based on documents seen by Bloomberg, vessels waiting to travel through the straits have been told that they will be unable to do so without the letter. Ship tracking data showed that handfuls of ships were left waiting at either end of the Turkish straits.

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A US Treasury official said that the US is aware of how Turkey’s new policy could complicate ships’ movement through the Turkish straits and has, along with the UK, raised these concerns with Turkish officials.

The official added that the US was confident the cap policy would not prevent insurers from responding to environmental or safety-related emergencies. The US highlighted the issuance of a General Licence for vessel emergencies related to the health or safety of the crew, or environmental protection.

The P&I Club said that negotiations between the IG and Turkey are likely to take place next Monday in an effort to resolve the issue.

Not all tankers are being blocked. Local port agent reports said that a ship owned by Russia’s Sovcomflot had sailed through the straits on Saturday after its Russian insurer Ingosstrakh provided the necessary letter. BLOOMBERG