Russia sanctions poke holes in insurance for Japanese companies

SWIFT expulsion puts frequently used reinsurance arrangements at risk

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Three major Japanese insurers have added Russian and Ukrainian waters to a list of high-risk navigation areas subject to additional premiums.

Nikkei staff writers

TOKYO -- Economic sanctions against Russia are creating new liability risks for Japanese businesses that operate there as gaps arise in private-sector insurance coverage.

Japanese companies often carry profit insurance, which offers compensation for earnings lost from certain types of disruptions, and construction insurance among other policies. These contracts typically stipulate that sanctions by the United Nations, the European Union, the U.K. or the U.S. are not covered.

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