The UK and the EU have agreed on a coordinated ban on insurance for ships carrying Russian oil. The ban will be part of a new package of EU sanctions against Russia. This is reported by the Financial Times, citing British and European officials.

As noted, this decision for Moscow will close the largest insurance market - Lloyd's of London, which will severely limit Russia's ability to export oil.

On the eve of the European Union agreed on new sanctions against Russia, including a partial ban on the export of Russian oil to the EU. At the same time, according to The Wall Street Journal, the ban on insurance of ships will seriously undermine Russia's ability to sell its oil in Asia.

Ship owners and traders get two main types of insurance to protect themselves from potential losses. One is hull and equipment insurance against physical damage to ships, which is usually purchased at Lloyd's of London.

The U.K.-coordinated ban could have much broader implications for Russia and force it to seek insurance in smaller, less-developed markets.

According to the Financial Times, the issue of insurance has become a serious stumbling block in the drafting of the decision on the embargo on Russian oil.

Concerns were expressed in Brussels that if the EU were to act independently on insurance sanctions against Russia, there would be a "level playing field" problem. Greece and Cyprus, which have significant areas of shipping, gave their consent only after Britain committed to following their example.

European Union leaders also agreed at an extraordinary summit to impose a partial embargo on Russian oil imports through ports and to cut off Sberbank, Russia's largest bank, from the SWIFT system.