UK insurance ban on space and aviation could ground Russian planes and rockets
Russian planes and rockets could be grounded after Britain banned them from the UK insurance market – the largest in the world.
As Marks & Spencer and Diageo joined the list of companies severing ties with Moscow, the UK government said Russian firms in the aviation or space industry will be blocked from accessing British-based insurance services.
‘The UK Government will bring in legislation to prohibit UK-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia,’ the Treasury said.
No cover: Russian airline Aeroflot is reportedly insured in the London market by a consortium led by underwriter Global Aerospace
The ban could lead to a sharp rise in aviation premiums because of the loss to the insurance sector, an aviation industry executive said.
Russian airline Aeroflot is insured in the London market by a consortium led by underwriter Global Aerospace, according to Reuters.
Companies around the world use Lloyd’s of London and other businesses operating in London for aviation insurance and reinsurance services.
‘We are in regular communications with the UK government and international regulators, and are working closely with the Lloyd’s market to uphold the implementation, at pace, of sanctions applied by governments around the world,’ said Patrick Tiernan, chief of markets at Lloyd’s.
The move came as companies from Diageo and VW to Ikea and Lego cut ties with Russia.
M&S also suspended shipments to its Turkish franchisee’s Russian arm, Fiba Group.