Crashing Shadow Fleet tanker had canceled Western insurance – gCaptain

By Alex Longley and Sanne Wass

(Bloomberg) — A Ghost Fleet tanker that crashed in the vital Denmark Strait produced a set of insurance documents that were invalid, a stark example of the lack of clarity over who would pay the bill if such a ship suffered a major disaster. .

The Andromeda Star, an 820-foot ship capable of carrying about 730,000 barrels of oil, was involved in a collision with a small Bulgarian cargo ship called Peace in early March. The tanker had previously collected oil from Russia – exports of which are sanctioned – and did so again after undergoing repairs in Denmark.

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The Danish Maritime Authority said in a Freedom of Information request and subsequent queries that the ship had provided some of its insurance documents from Gard AS, the world’s largest provider of spill and spill cover. collisions. But a Gard spokesperson said it was not the insurer at the time of the collision and it does not cover it now either.

The ship is part of a sprawling fleet of tankers that Russia has assembled to help maintain its oil supply after the country’s exports were sanctioned over its invasion of Ukraine. These vessels often do not meet industry standards and may be decades old. As a result, the European Union is currently discussing restrictions on these vessels in order to mitigate the risk of environmental disaster.

The provision of protection and indemnity insurance by Gard would normally include protection against oil spills and other risks such as collisions.

But on top of that, the crew also presented Danish inspectors with documents proving they were covered against spills by Russian insurer Ingosstrakh. It would be unusual to have two sets of overlapping coverage, according to a veteran marine insurance industry professional who reviewed the documentation.

Although it benefits from Ingosstrakh protection against spills, its validity remains uncertain in the event of a problem transporting Russian goods violating international regulations. The Moscow-based company has previously said it complies with all applicable sanctions.

This means that if a shipment did not meet the $60 per barrel cap on the price of Russian crude, Ingosstrakh could end up not covering it.

Gray area

The documents also highlight the fact that authorities often only receive publicly available information about a ship, its owners and other service providers.

The owner of the Andromeda Star has an address that appears to be on a rural street in Goa where it is not clear on Google Maps whether a property has even been built. A message to the company’s email address, listed in the international shipping database Equasis, was not returned.

About a month after the accident, the ship was sailing through Danish waters again, this time carrying laden Russian crude when its price was quoted above $60 a barrel by Argus Media. If the cargo on board was purchased above this level, it would constitute a violation of Western sanctions.

In response to questions about the incident, Ingosstrakh cited the Danish Maritime Authority as saying the vessel had all required certifications, including insurance coverage, and that it was not aware of any damage claimed in connection with the incident. It was not specified whether this was the insurer.

“Ingosstrakh carries out its activities in strict compliance with applicable legislation,” the Russian company said earlier this month in response to questions about its compliance with the G-7 price caps. “The terms of our policies are based on international standards and best practices and follow the guidelines established by the respective authorities of the different countries. »

Insurance and opaque property information weren’t the only oddities.

During inspection after the accident, it also emerged that the tanker had problems with its emergency generator, a key piece of equipment that provides backup power to the ship as a whole.

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