UK shuts out Russian companies from aviation insurance market

Britain will ban Russian companies from the multi-billion dollar aviation and space insurance market in London, the world's largest commercial and speciality insurance centre, the finance ministry said on Thursday. Russian companies in the aviation or space industry will be blocked from accessing British-based insurance or reinsurance services directly or indirectly, the ministry said. "The UK Government will bring in legislation to prohibit UK-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia," the Treasury department said.<br/>"Further details of the legislation will be available in due course." The sanctions only apply to aviation and space insurance but the British government has said it is constantly looking at new ways to isolate Russia. The move on aviation insurance will leave Russian commercial airlines scrabbling to get cover elsewhere. Industry sources say this could include from Chinese reinsurers, while other Western insurers are likely to hold back from the business, fearful of other countries imposing similar restrictions.<br/>