Russian insurance firms forbidden from transacting with 'unfriendly countries'

Earlier this month the Bank of Russia increased the capital for Russian National Reinsurance Co. from $600 million-$2.57 billion to expand the volume of available capacity, enabling domestic carriers to reinsure more risks within Russia. (Credit: Rawf8/Stock.adobe.com)

In what seems to be in direct response to a number of insurers and reinsurers taking steps to cut ties with Russia, the Russian Parliament has enacted a new law prohibiting insurers in the country from completing transactions with insurers, reinsurers and brokers from what it calls “unfriendly states.” The legislative amendment was signed by President Vladimir Putin and is in effect until Dec. 31, 2022.

The “unfriendly states” include the EU, U.K., Ukraine, Montenegro, U.S., Canada, Japan, Switzerland, Albania, Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, North Macedonia, Japan, South Korea, Australia, Micronesia, New Zealand, Singapore and Taiwan. No risks in Russia may be ceded to carriers in any of these countries.