Britain bans Russian companies from the multi-billion dollar aviation and space insurance market in London, the world's largest commercial and specialty insurance center, the British finance ministry said, quoted by Reuters.

Russian companies in the aviation or space industry will be blocked from accessing British-based insurance or reinsurance services directly or indirectly, the ministry said.

"The UK Government 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," the Treasury department said adding that "further details of the legislation will be available in due course."

The move on aviation insurance will leave Russian commercial airlines in need of getting insurance on other markets. Considering that Western reinsurers are however reluctant to doing business with Russian partners because of the sanctions regime, this ban imposed by the UK leaves rather few possibilities, most probably with the Asian reinsurers.

The ban could also lead to a sharp rise in aviation premiums because of the loss to the insurance sector, an aviation industry executive said, again quoted by Reuters.

Lloyd's of London is however, together with other companies operating in London, the main aviation insurance and reinsurance provider, including for the Russian airlines.

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