UK bans Russian companies from the insurance market

UK bans Russian companies from the insurance market

Britain’s finance minister announced on Thursday that Russian companies will be barred from the London insurance market, the leading commercial and specialty insurance centre.

Russian aviation and space industries will be barred from directly or indirectly accessing British insurance and reinsurance services.

The UK government plans to introduce legislation prohibiting UK-based insurance and reinsurance companies from conducting financial transactions with Russian entities or for use in Russia. Commercial insurance is provided by Lloyd’s of London and other London-based organisations to companies from all over the world.

As European banks reassess their business in Russia, Societe Generale (SCGLY), one of Europe’s top banks, stated on Thursday that it was striving to decrease its risks.

For a variety of reasons, the existence of reinsurance adds another layer of complication. The Regulation’s Article 3c has a substantial influence on the aviation leasing and financing industry, notably prohibiting the leasing of aircraft to Russian entities.

Fears about possible write-downs and a poor economy have weighed heavily on bank stocks in recent days. Many investors have been attempting to sell their Russian holdings in recent days.

Telecom Italia’s (TLIT) CEO said his stand-alone plan will allow all shareholders to benefit from the increased value.

Stocks in Australia were up after the close on Thursday, thanks to advances in the Resources and Materials sectors. The S&P/ASX 200 gained 0.49 percent at the close in Sydney.

Gold futures for April delivery rose 9.35 percent to $1,931.65 a troy ounce, up 0.49 percent. In other commodities trading, April crude oil increased 4.86 percent or 5.38 cents to $115.98 per barrel, while the May Brent oil contract rose 5.52 percent or 6.23 cents to $119.16 per barrel.

The AUD/USD exchange rate remained constant at 0.73, while the AUD/JPY increased 0.47 percent to 84.67.

At 97.50, the US Dollar Index Futures were up 0.09 percent.

Stocks in Japan were up after the close on Thursday, thanks to increases in the Mining, Petroleum, and Shipbuilding sectors.

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