Britain Sanctions NZ Insurer over Iran & Russia Oil Trade

Britain on Tuesday sanctioned Maritime Mutual, the New Zealand-based marine insurer that was the subject of a Reuters special report into how it had helped in the trade of tens of billions of dollars of Iranian and Russian oil.

"(Maritime Mutual) is or has been involved in obtaining a benefit from or supporting the Government of Russia by carrying on business in a sector of strategic significance to the Government of Russia, namely the Russian energy sector," the British Government said in a statement.

Reuters reported in October that Maritime Mutual had insured vessels in what's known as the shadow fleet – hundreds of oil tankers owned by different firms that transport sanctioned cargoes from countries such as Iran, Russia and Venezuela, concealing their trade with fake locations, documents and names.

The company had insured at some point almost one in six of the shadow fleet tankers sanctioned by Western governments, including the US, European Union and Britain, Reuters found.

The British sanctions imposed on Maritime Mutual Insurance Association, the company's main business based in Auckland, New Zealand, include an asset freeze and director disqualification. Maritime Mutual Association Limited, an affiliate in Gibraltar, was also sanctioned.

The UK Treasury issued a licence, which expires on April 9, allowing for the winding down of insurance policies written by Maritime Mutual entities and their subsidiaries before the sanctions announcement.

"The Board of Maritime Mutual Insurance Association (MMIA) strongly disagrees with the UK Foreign, Commonwealth Development Office's (FCDO) decision to designate Maritime Mutual Insurance Association (NZ) and Maritime Mutual Association on the UK's Russia sanctions list," a spokesperson for the company said in an email to Reuters.

"We are considering all our options." The spokesperson reiterated previous statements that Maritime Mutual and its affiliates do not provide cover to any vessel within the shadow fleet or to vessels carrying oil and associated products originating from Russia.

The person said that any vessel carrying MMIA insurance that is subsequently listed within one of these categories has its insurance cancelled.

"The government is incorrect in its assertation that MMIA is involved in obtaining a benefit from or supporting the Government of Russia by carrying on business in a sector of strategic significance to the Government of Russia, namely the Russian energy sector," the spokesperson said.

The sanctions against Maritime Mutual on Tuesday are part of a package of nearly 300 measures that Britain said was its largest set of penalties since Russia's full-scale invasion of Ukraine in 2022.

"The UK  has today taken decisive  action to  disrupt the critical  financing, military equipment and revenue streams that sustain Russia's aggression," foreign minister Yvette Cooper said in a statement. - Baird Maritime