Tokyo: The Japanese government has asked nonlife insurers to continue providing marine war insurance in Russian waters to ensure that Japan can keep importing liquefied natural gas from the Sakhalin-2 project.

The Financial Services Agency and the Agency for Natural Resources and Energy made the written request to the General Insurance Association of Japan on Tuesday.

Last week, Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc. and Mitsui Sumitomo Insurance Co. told policyholders that they will stop providing insurance to cover damage to ships from war in Russian waters, effective from next January.

The Japanese insurers made the move after foreign reinsurance companies said they will no longer take on such war-related risks.

The government agencies asked the nonlife insurance industry to assume part of the risks the reinsurers have refused to take on.

Japan annually imports 6 million tons of LNG from the Sakhalin-2 oil and gas project in Russia’s Far East, or 8 pct of Japan’s total LNG imports. Without marine war insurance, tanker shipments from the project are feared to stop.

The three Japanese insurers are negotiating with reinsurers to maintain the war coverage, industry sources said.

JIJI Press