• 2022-Jun-21

TALKING POINT on IBI

It pains me to see how a country of the highest culture – the home of Fyodor Dostoyevsky, Alexander Pushkin, Piotr Tchaikovsky, Sergei Rachmaninov and many others – allowed itself to be dragged into this war.
As a German, I am unfortunately well aware of the mechanisms that lead to such aberrations. I hope that in these times our Western society will continue to be able to distinguish between the disastrous policies of individuals and their blind followers on the one hand and the great Russian civilisation on the other.

What influence does this have on our industry?
As an EU Notified Body, we are no longer allowed to supply Russian customers, be they for or against Putin. Production sites in Ukraine are either completely destroyed or have otherwise suffered severely from the war. Trade in components and smaller boats has more or less come to a standstill.

The world of superyachts is also taking a beating. Yachts belonging to Russian owners are lying abandoned in the harbours of the Mediterranean. The crews have either left or are sitting on the street, penniless and sanctioned. No one takes care of the high-maintenance vessels any more. Often the owner is unknown and the marinas no longer receive mooring fees. If they do get paid, it is done in cash, delivered by a strawman. Some large yachts were moved to Montenegro and other places beyond EU and other Western jurisdictions. Other yachts were reflagged as quickly as possible. The typical migratory patterns of Russian-owned yachts have also changed, as can be seen via AIS, a fact sure to have significant implications for certain marinas and their service companies. 

And the impact on the insurance industry? 
Confidence is gone and policies will change! We can only hope that the nightmare comes to an end as soon as possible.