The G7 Imposes Insurance Ban on Russia and Limits the CCP’s Economic War Intentions

According to media reports on December 31st, 2022, the G7 countries imposed an insurance ban in early December on companies within the European Union and the G7 from providing insurance and reinsurance to suppliers of Russian crude sold above the cap of $60 per barrel. This move was not only a heavy blow to Russia’s offshore oil transportation, but also deterred Communist China’s intentions to attack Taiwan by force.

It is reported that companies in G7 nations control 90 percent of the global maritime transportation insurance and reinsurance business.

Communist China is a major importer of crude oil, so seaborne transportation of crude oil accounts for a large proportion, still relying on Western insurance firms to protect their vessels. In the future encounter with Taiwan, the insurance ban would likely target Communist China directly that will trouble Beijing.

In 2022, the CCP not only increased its exposure to non-Western insurance firms to cover the cost of less risky Russian oil, but also accelerated its expansion of a domestic oil tanker fleet for the purpose of controlling its cargo and movement. In August last year, an anonymous Chinese ship owner even spent $376 million on unmarked oil tankers to circumvent maritime shipping sanctions through “ship-to-ship transfers” in the Mid-Atlantic region.