Northern Black Sea added to war-risk list as tension mounts on Ukrainian border

The London insurance market’s Joint War Committee (JWC), the body that assesses and designates regions of heightened risk for the Lloyd’s and London company market, has added sections of the Ukrainian and Russian northern Black Sea to its master list of areas with an elevated likelihood of war, piracy or terrorism.

This follows the withdrawal of cover by leading international insurers for Ukrainian airlines. Ukrainian airlines now need to negotiate any cover with carriers on a daily basis as the situation in Ukraine evolves.

The Lloyd’s Market Association’s JWC then added Ukrainian and Russian waters in the Black Sea and the Sea of Azov to its ‘Hull, War, Piracy, Terrorism and Related Perils Listed Areas’.

“The application of this list on individual contracts will be a matter for specific negotiation,” stated the JWC.

The addition of the Ukrainian and Russian waters to the JWC list now means that shipowners carrying out voyages in the region will have to notify underwriters and re-negotiate coverage.

“From time to time, the JWC updates and disseminates the Listed Areas – these are areas where owners are required to notify underwriters of voyages. Rating is a matter for individual negotiation between underwriters and brokers, and the JWC plays no role in that,” explained the committee.

“Whilst the current assessment is that there is armed balance, it was decided to issue JWLA-028 as a precautionary measure. There have been no maritime incidents but the possibility of a miscalculation is clear, so the JWC has enabled notification of voyages to underwriters,” it continued.

The move comes as Russia carries out naval drills in waters near Crimea and masses land troops at the Ukrainian border.

According to Ukrainian news reports, a Russian naval drill announcement this week effectively shut off access to the key seaport of Odessa. However, Russia reportedly argues that it has left a navigable corridor 1,000 metres wide.