Rising Insurance Premiums in High-Risk Black Sea Region: A Step Towards Sustainable Energy or a Threat to the Environment?

In recent months, insurance premiums have surged due to the increased risk of war, with rates in the Black Sea region being significantly higher than in the Red Sea. According to a study, premiums in crisis areas like the Red Sea range from 0.5% to 0.7% of a ship’s value, while in the Black Sea they can reach up to three percent. Lloyd’s of London has classified the Black Sea region as high-risk due to its proximity to Russia’s sphere of influence.

Despite security concerns, a project in the Black Sea is progressing as a vital step towards reducing dependence on Russian gas. Greenpeace science expert Stefan Stadler supports this move and highlights that while risks such as earthquakes and external influences are being evaluated during an environmental impact assessment, sea mines and unexploded ordnance are not being considered.

In July and August 2023, Russia conducted military exercises in the Bulgarian economic zone of the Black Sea, which raised concerns about potential disruptions to construction and exploration work in the region. Greenpeace calls for a thorough risk analysis before proceeding with projects like Netpun Deep, where multiple ships transport materials between construction sites and ports. The organization emphasizes that security challenges must be addressed before sustainable energy development can take place in the Black Sea region.

In response to escalating security concerns in the area, Romania, Bulgaria, and Turkey have formed a task force for security in the Black Sea. The Romanian Ministry of Defense highlighted its importance for countering potential threats from drifting sea mines especially. OMV Petrom reassures that it is closely monitoring geopolitical developments and implementing necessary measures to ensure business continuity for its project.

While some voices have raised concerns about environmental impact and security risks associated with Neptun Deep project by Greenpeace are dismissed as alarmist by some who believe it plays into Russia’s hands . As stakeholders continue their efforts towards sustainable energy development in