Page 7 - AsiaElec Week 48 2022

AsiaElec COMMENTARY AsiaElec

constructed now. Russia’s own oil tanker fleet countries, including India, Reuters reports.
numbers a bit more than 80 vessels, but Russia Russia reportedly also asked for 41 items for
continues to rely overwhelmingly on the Greek aircraft and helicopters, including gear compo-
fleet that carries a bit more than half of all Russia’s nents, fuel, communication and fire extinguish-
seaborne oil exports. ing systems, Reuters said.
Oil price cap scheme
Hunt for equipment The next test for Sino-Russian relations will
The Western energy sanctions have proven to be the West’s attempt to impose an oil price cap
be ineffective so far, but the ban on exporting scheme on Russian oil exports, which will be
equipment to Russia is almost complete and sent enforced by refusing to grant insurance policies
energy companies scurrying around the world to to ships that ignore the caps.
find alternative suppliers. Novak said that Rus- India and Turkey have both said they will rec-
sia and China plan to jointly produce equipment ognise Russian insurance as coverage, effectively
for the energy industry as part of their growing ignoring the sanctions, but China, afraid of US
cooperation. sanctions, has been more circumspect.
“China is one of the key manufacturers of Turkey recognises the insurance certificate of
equipment in the oil and gas sector. There is Russian companies for marine transportation,
already close cooperation on the supply of oil though India and China honour them but not
and gas equipment for projects in Russia,” he completely, Russia’s Deputy Minister of Trans-
said. “We plan to jointly work on the develop- port Alexander Poshivay told reporters at the
ment and production of equipment that can be summit.
used both in China and in Russia,” Novak added. “Yes,” the official said, answering a question
There are similar plans to boost trade with from reporters. “India and China recognise
India as Moscow seeks to enhance trade with all [them] largely, but not completely,” Poshivay
the “friendly” nations to replace imports from noted, without giving more details.
the unfriendly ones. China does not yet recognise protection
Sanctions-hit Moscow reportedly sent India and indemnity insurance, more commonly
a list of at least 500 different products it urgently known as P&I insurance, and reinsurance cer-
needs, including parts for cars, aircraft and tificates issued to shipowners by Russian insur-
trains, Reuters reports, citing four sources famil- ers, according to Poshivay. The Central Bank
iar with the request. of Russia (CBR) has recapitalised the Russian
Russia’s Ministry of Industry and Trade asked National Reinsurance Company (RNRC) to give
Indian companies to provide lists of raw mate- it the financial firepower to be able to adequately
rials and equipment as they scour the world for insure marine transport, but the issue of accept-
inputs they used to buy in Europe. ing this insurance remains highly politicised.
Car parts are in particular demand as Russia’s “RNRC increased its authorised capital to
automotive sector has all but ceased to function RUB750bn ($12.5bn), but now it is actually
as car production was up to 60% dependent on almost unlimited. The Central Bank is a guar-
imported parts that have stopped arriving. The antor for RNRC, that is, reinsurance guarantees
Russian ministry sent a 14-page list of desper- can be applied to any volume of Russian oil and
ately needed car parts, including engine com- oil products,” Poshivay said, noting that practice
ponents such as pistons, oil pumps and ignition is needed for successful work.™
coils, as well as bumpers and seatbelts, to corre-
sponding ministries and state agencies in other

Week 48 29•November•2022 www. NEWSBASE .com P7