DUBAI, July 27 (Reuters) - Iran has allocated billions of
dollars to insure its oil tankers itself, the semi-official Fars
news agency reported on Friday, its latest effort get oil to the
remaining buyers through the financing obstacles set by Western
sanctions.
The European Union imposed a ban on July 1 on insurance for
tankers carrying Iranian oil, preventing EU insurers and
reinsurers from covering tankers carrying Iran's crude anywhere
in the world.
"After the European Union imposed insurance sanctions on
Iranian tankers ... the government has allocated billions of
dollars for insuring Iranian tankers that export Iranian oil,"
an unnamed official told Fars, without giving further details.
A senior official from Iran's major tanker operator NITC
told Reuters in June that it had secured insurance cover from
privately owned Iranian provider Kish P&I, with $1 billion in
insurance in the event of a collision or oil spill.
European insurers dominate the marine insurance sector, and
Iran's Asian crude buyers have struggled to find a way to
replace them. As a result, Iran has seen its oil exports plummet
from regular levels seen last year.
Earlier this month, Iran said it would insure any foreign
ships that enter its waters but no further detail was provided
on how the scheme would work for foreign companies and how
insurance would be paid in the event of an accident at sea.
Japan had completely halted Iranian crude imports in July
because of the lack of cover, but earlier this month industry
sources said Japanese insurers were expanding their maritime
coverage to allow more domestic tankers to transport Iranian
crude.
Last month India said it would allow state refiners to
import Iranian oil, with Tehran arranging shipping and
insurance. In May, Indian refiner MRPL secured coverage from an
Iranian insurer, becoming the first Indian firm known to do so.
Western countries have imposed sanctions on Iran in an
effort to stop its nuclear programme, which they suspect is a
cover to build nuclear weapons but which Tehran insists is
peaceful.
(Reporting by Zahra Hosseinian, editing by William Hardy)