The United Kingdom Treasury, on Thursday said that Russian enterprises in the aviation and space industry will be unable to obtain insurance or reinsurance in the United Kingdom.
As a result of Russia's invasion of Ukraine, the Treasury said in a statement that the "sanctions will restrict the benefits Russian firms obtain from their access to the global insurance and reinsurance market."
Global corporations turn to the Lloyd's of London insurance market for such protection. According to the Treasury, the UK government will introduce laws preventing UK-based insurers and reinsurers from entering into transactions with Russian firms.
The decision comes after the European Union took similar action as part of its sanctions package.
According to The Wall Street Journal, insurers have dramatically reduced coverage across product lines for Western enterprises looking to trade or operate in Russia. Brokers claim this has spread to trade credit insurance, political risk insurance, and property and casualty insurance.
The decision is the latest in a series of measures aimed at punishing Russia's aviation sector in the aftermath of the country's invasion of Ukraine. Russia's airlines have been mostly barred from flying in European airspace. The biennial Farnborough International Air Show, one of the aerospace industry's hallmark events, said on Wednesday that Russian participation in this year's exhibition, which is set to take place in July near London, has been suspended.
(Inputs from Wall Street Journal)