Russia’s ability to trade in the international arena has received another body blow after it was announced that the International Association of Classification Societies (IACS) has decided to revoke the membership of the Russian Maritime Register of Shipping (RMRS).
The move fundamentally increases insurance risk in Russia by compromising contracts and “will likely hasten the removal of Russian shipowners from other IACS class societies”, Richard Meade of Lloyds List writes.
Moreover, as the Kremlin pushes closer and closer to Ukraine’s border with Nato-affiliated countries out west, the suspension of RMRS’s membership could further isolate Russia’s ability to trade internationally, Meade adds.
The IACS said it had sought legal advice on the matter, following which it had been decided that keeping Russia’s register in the association was no longer tenable.
“As such, and under the terms of its Charter, which requires agreement from 75% or more of its Members, (the) IACS Council has therefore adopted a Resolution that the Russian Maritime Register of Shipping’s membership of IACS is withdrawn with immediate effect,” IACS said.
The decision by IACS had been expected, as mounting sanctions and the withdrawal of multinational investors from Russia make it increasingly difficult to rely on insurance clauses pertaining to a military aggressor facing new freeze-out measures with every passing day.
One of the first classification societies to follow suit was DNV, Norway’s internationally accredited register in Høvik.
DNV said all contracts had been placed under review, including operations with Russian entities, and that related business was being wound down.
CEO Remi Eriksen said: “We are deeply disturbed by the invasion of Ukraine, which is inflicting terrible harm to the citizens of Ukraine and threatening peace across the region. Our top priority is the safety of our people, and we are working to ensure our employees have the support they need.”
In what appears to be a domino effect set in motion by the IACS decision, the American Bureau of Shipping (ABS) has added its voice to that of DNV.
ABS said all activities in Ukraine had been decreased, if not suspended altogether.
The decision, unfortunately, includes Moldova and Georgia.
