TURKEY: Insurance supervision sets up a mechanism for insuring sea vessels and aircrafts operating the routes to Ukraine and Russia

15 March 2022 — Daniela GHETU
Because of the war situation between Russia and Ukraine, the Turkish Insurance and Private Pension Regulation and Supervision Agency (SEDDK), will manage the insurance coverage issues of civil cargo and passenger sea vessels and aircrafts operating the routes between these countries and Turkey within the scope of the Special Risks Management Center until the end of 2022.

In the announcement quoted by all insurance media in the country, SEDDK underlined that the first policies in this context were issued within the scope of products imported by the Turkish Grain Board.

In the statement made by SEDDK on the subject, the supervision agency explained that due to the war situation and the subsequent sanctions, "there is a problem in finding insurance coverage" for the said means of transportation and "this situation may adversely affect our commercial and economic relations with these countries."

In order to solve the aforementioned problem, it has been evaluated that the Special Risk Management Center (ORYM), which was established with Article 33/A of the Insurance Law No. 5684, can provide coverage. In this context, in the event that insurance coverage cannot be found due to war and similar reasons for the bodily and material damages that may occur in the passengers and crew (employees), cargo and these vehicles themselves, and the liability of these vehicles, on the voyages to Ukraine or the Russian Federation, it has been decided to manage the risks related to these within the scope of ORYM until the end of 2022.

AT least for the being, Turkey has bit joined the international pool of countries imposing economical sanctions to Russia. Foreign Minister Mevlut CAVUSOGLU told a diplomatic conference in Antalya on Sunday, 11 Match, that Turkey would not join the sanctions imposed on Russia by some Western countries over special operations in Ukraine. He has reinforced Turkey's repeated statements that it has no intention of joining sanctions against Russia so as not to damage its own economy and to keep the door open for talks with the Moscow government.