Revisiting Insurance Component of Russia’s Foreign Trade Logistics

Abstract

As of today, increasing Russia-China trade turnover logically leads to greater logistics needs. With Western sanctions against Russia still in place, the logistics of such trade is under the constant pressure, for instance, secondary sanctions. Thus, in terms of insurance as well as re-insurance there is a turn for Russian clients from Western sources (i.e. P&I Clubs) to that of ‘friendly states, i.e. China. However, few Russian insurance are aware of the related peculiarities when addressing the insurers from China. As such the paper points out key insurance practices of Chinese companies when rendering services in carrier’s/freight-forwarder’s liability insurance as well as goods insurance. Being in this vein, a case of general average with Flying Fish 1 is put to the front to show the complexity of Russia’s consignees dealing with Chinese insurers. The authors end up with their own conclusions on this conundrum.