The UN established the initiative in July in a bid to allow vital cargo from Russia and Ukraine to make its way around the globe, and officials confirmed at the end of last week that the initiative had been extended by 120 days.
Ukraine is commonly referred to as the “breadbasket of Europe” and its exports are relied upon by a host of low-income countries.
Lloyd’s chief of markets Patrick Tiernan said: “Lloyd’s welcomes the extension of the Black Sea grain initiative and is fully supportive of the changes made in recent days to sanction regimes to support the shipments of Russian-origin food and fertiliser, as well as the clear joint statement issued by the US, UK and EU.
“The promotion of global food security supports an essential humanitarian act, and the Lloyd’s market stands ready to help ease global food pressures.”
The joint statement from the US, UK and EU made changes to sanctions regimes to allow the transportation of Russian food and fertiliser.
“These provisions make clear that banks, insurers, shippers and other actors can continue to bring Russian food and fertiliser to the world,” the joint statement said.
In a market note seen by Insurance Insider, the Corporation said it had sought legal advice and was “confident” such shipments can be written in the Lloyd’s market.
However, Lloyd’s emphasised that market participants should make their own judgement on how such policies might be underwritten “in accordance with their own risk appetite”.
The web of international sanctions issued in the wake of Russia’s invasion of Ukraine has significantly impacted the London market.
Insurance Insider understands that, to date, there has been a total shipment of 12 million tonnes of grain under the initiative.
