Türkiye has started requesting tankers navigating its straits to provide proof they are properly insured, in a move that comes after some international companies reportedly canceled the coverage of numerous vessels due to sanctions imposed on Russia, according to Turkish officials.

At least 20 oil tankers are reported to have lined up off Türkiye as of Wednesday as operators raced to adhere to new Turkish insurance rules added ahead of a G-7 price cap on Russian oil over its invasion of Ukraine.

Turkish maritime authorities are asking for additional guarantees from insurers that the transit through the Bosporus and Dardanelle straits would be covered starting from the beginning of this month.

The new rule was announced before a $60 per barrel price cap was imposed this week on Russian seaborne crude. Western insurers are required to retain proof that Russian oil covered is sold at or below that price. The industry has a 45-day transition period and a 90-day grace period if the G-7 changes the price cap later.

Baring vital commercial importance as they connect the Black Sea with the rest of the world, the Turkish straits became a major point of discussion with the eruption of the Russia-Ukraine war on Feb. 24.

The passages are among the world’s most difficult waterways to traverse, as ships must deal with strong currents, sharp turns and varying weather conditions.

The 1936 Montreux Convention guarantees freedom of navigation for merchant vessels passing through Türkiye’s two straits. But it also gives Türkiye the right to regulate security – a provision it is now used to make sure the oil ships are insured against spillage and other accidents.

Millions of barrels of oil per day move south from Russian ports through the Bosporus and Dardanelles straits into the Mediterranean.

Ensuring safe navigation, as well as protecting life, property and the environment, in the Turkish Straits are considered Türkiye’s red line.

Since 2002, Türkiye has obliged all ships seeking to pass through the straits to have protection and indemnity (P&I) insurance, with vessels lacking such coverage barred from going through.

International insurance companies

Unnamed Turkish officials told Anadolu Agency (AA) that international insurance companies – most of them U.K.-based – expect Türkiye to let oil tankers through the Istanbul strait without any guarantees.

In this way, they intend to both comply with the international sanctions and maintain their responsibilities toward ship owners with which they have commercial relations.

However, companies have stated that the insurance of many oil tankers may not be valid due to the sanctions against Russia, creating uncertainty on the matter.

These insurance companies have canceled the coverage of many oil tankers, declaring that in the event of an accident, they would provide no compensation for such expenses as cleaning up spillovers, compensating damages to third parties or removing the ship from the site.

As of Dec. 1, Ankara started demanding that ships carrying crude oil that have a very high risk of causing disasters still have valid and comprehensive insurance during their passage through the Turkish straits.

"We want to be sure about the coverage because they have started to cancel it," an official source told Agence France-Presse (AFP) on condition of anonymity.

Who will cover billions of dollars in damages?

An unnamed official rejected Western media reports suggesting that Türkiye’s new rules have created a logjam of Russian ships in the two straits.

The official said there were no "significant" changes to marine traffic and that Türkiye could take extra measures to "prevent congestion."

"Türkiye’s request for confirmation that oil tankers passing through the straits have valid insurance is a just and legitimate demand since the majority of international insurance companies, which insure the tankers passing through the strait, have declared that the tankers they previously insured are no longer within coverage due to the sanctions imposed on Russia," said the official on condition of anonymity.

The official stressed that to let oil tankers pass through the straits without insurance would violate regulations in Türkiye.

"God forbid, if an accident happens in the straits, who would cover the damage that can reach billions of dollars? Who would be responsible?" the official asked.

As tankers pass through the Bosporus, no one can turn a blind eye to the consequences of possible accidents, the official added. However, the official also noted that if the confirmation letter is not submitted, measures to manage maritime traffic could be taken if necessary to prevent congestion.