Russian ships are left without insurance following attacks by the Ukrainian Armed Forces
Russian ships have begun facing refusals to insure against war risks following an intensification of Ukrainian strikes in the Black and Azov Seas. Due to heavy losses, insurers are raising rates or refusing to enter into new contracts altogether, and Russian authorities are already looking for ways to support the industry.
Following the intensification of attacks by the Ukrainian Defense Forces in the Black and Azov Seas, Russian shipowners have faced a new problem. Insurance companies are increasingly refusing to insure against war risks or are significantly raising the cost of such policies. According to Dmytro Hrushyna, head of the cargo insurance department at the brokerage firm Remind, such cases have been reported in recent weeks. The reason is the growing risks following Ukrainian strikes on Russian targets at sea.
Against this backdrop, on July 13, the Armed Forces of Ukraine reported that in just eight days, they had struck 105 Russian vessels heading toward the temporarily occupied Crimea. According to the publication’s sources, the situation has already seriously impacted the reinsurance market. In the first four months of 2026, the loss ratio in the war risks segment—which includes terrorist acts, sabotage, and drone attacks—reached 2,800%.
As a result, insurers were forced to drastically revise their rates. According to Dmitry Grushin, rates increased two to four times in the second quarter of this year. However, even such an increase, according to market participants, no longer covers the losses incurred. “Rates have risen two to four times, but this is no longer enough to offset the losses,” noted Dmitry Grushin.
Due to this situation, the Russian government has begun seeking new mechanisms for insuring maritime transport. According to sources interviewed by *Kommersant*, the Ministry of Transport, the Ministry of Energy, and the Central Bank of Russia are proposing to extend the state system of insurance against war risks—which is already in use in the occupied territories of Ukraine— to maritime vessels and international sea and river transport as well.
However, according to sources, the Russian Ministry of Finance opposes this decision. The ministry cites a budget shortfall and is proposing an alternative. Specifically, the Ministry of Finance proposes creating a mutual insurance association comprising ship and cargo owners. There are also plans to establish a special compensation fund.
It is expected that this fund will be financed by insurance companies and market participants. In the event of the loss of a vessel or cargo, or the occurrence of an insured event, compensation will be paid out from this fund. Thus, the intensification of Ukrainian strikes in the Black and Azov Seas not only affects the safety of Russian shipping but also creates ever-greater financial problems for the insurance market and shipowners. That is precisely why Russian authorities are already being forced to seek new mechanisms to offset the growing risks to maritime transport, according to reports in the Russian media.
As a reminder, on the night of July 8, strike drones of the Ukrainian Defense Forces struck a military airfield in Borisoglebsk, Voronezh Oblast, Russia. Aircraft of the Russian Aerospace Forces, used for both combat and training missions, are based at this airbase.
Over the past day, the Ukrainian Defense Forces have reduced the strength of the Russian army by another 1,260 troops. The General Staff of the Ukrainian Armed Forces released updated data on enemy losses as of July 8, also reporting the destruction of a significant amount of enemy equipment.
