Russian State Reinsurer Will Get New Capital In Light Of Ukrainian Attacks
Adedokun Waliyu
1 min read
The Russian central bank will inject an additional 165 billion roubles ($1.96 billion) into the capital of state-owned reinsurance company in September in light of the increased risks of attacks and sabotage, Governor Elvira Nabiullina said on Friday.
Ukraine launched hundreds of drones deep inside Russian territory in recent months to strike economic targets such as oil refineries and e-commerce warehouses. As a result, demand for insurance coverage spiked and premiums have risen.
After international reinsurers withdrew from the Russian market after the start of the conflict in 2022, the Russian national reinsurance company, owned by the central bank, became the key player. The company is under the U.S. and EU sanctions.
“Our decision will enable the company to meet all of its obligations. The company now effectively reinsures all risks related to terrorism and sabotage, while continuing to provide reinsurance services to key sectors on preferential terms,” Nabiullina told a news conference.
