UK Extends Russian Sanctions To Insurance Sector

Russian companies in the aviation or space industry will be prevented from making use of UK-based insurance or reinsurance services directly or indirectly, the UK government announced on Thursday as further sanctions in response to the attacks on Ukraine.

UK Chancellor Rishi Sunak said the latest measures will limit the benefits Russian entities receive from their access to the global insurance and reinsurance market.

“Russian companies in the aviation or space industry will now be prevented from making use of UK-based insurance or reinsurance services directly or indirectly. This measure will severely limit their access to the global insurance and reinsurance market,” he said.

Through Lloyd’s and the London market, the UK describes itself as a world leader in these sectors of the global insurance market. In taking such action, the UK is demonstrating its commitment to apply severe economic sanctions in response to Russia’s invasion of Ukraine, the UK Treasury department said.

The UK government said it 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. 

"Coupled with similar actions by the EU, this move further isolates Russia’s economy from the international financial system," the Treasury statement notes.

The move came as the London Stock Exchange Group (LSEG) suspended 28 companies linked to Russia from trading as a result of a series of sanctions being imposed by the UK over the past few days.

"London Stock Exchange Group has suspended trading in 28 Russian-listed securities," said LSEG Chief Executive David Schwimmer.

“This has been based on sanctions and the ability to run an orderly market. Suspensions are driven by those decisions, so if we see any other securities affected by sanctions then similar actions will take place," he said.

Companies affected include the state-owned oil titan Gazprom and the country’s largest lender, Sberbank, according to a notice posted by LSEG. 

Some of Russia’s largest miners, oil companies, and metals giants have also been suspended, including Lukoil, Norilsk Nickel, Polyus, and Rosneft.