The UK have announced they will bring further sanctions preventing Russian aviation and space industry companies to get access to the British insurance sector.
Russian aerospace companies will be prevented from making use of UK based insurance, the country’s government announced as a response to the invasion of Ukraine by Russia. The Treasury said that these new economic sanctions “will limit the benefits Russian entities receive from their access to the global insurance and reinsurance market.”
The British government will come up with legislation to prohibit insurance and reinsurance providers from “undertaking financial transactions connected with a Russian entity or for use in Russia,” with further details on the legislation coming “in due course.”
The move will block Russian companies operating in those sectors from the UK’s insurance market. London is a key global centre for aviation and space cover, with companies from around the world using Lloyd’s of London and other insurance providers for commercial insurance and reinsurance.
This announcement comes a few days after the U.K. focussed on Russian banks, oligarchs and exports, and banned all Aeroflot planes from landing in the country. The move aims at further isolating Russia from the international financial system, especially given the U.K.’s significant share in the global insurance market.