Insurance companies end airspace coverage in Russian-Ukrainian conflict

Days after the United States and Canada ordered most diplomats out of ukraine amid heightened risk of Russian invasion, insurance companies also began disconnecting and refusing to cover Ukrainian airspace.

Monday, Ukraine International Airlines told local news outlets that he has received “an official notification from insurance companies to terminate aircraft insurance for flights in Ukrainian airspace” for fear of an imminent Russian invasion.

While Ukraine has been in a semi-permanent state of war since Russia annexed the island of Crimea in 2014, tensions have flared after Western countries like the US and UK reported a buildup of Russian troops around the Ukrainian border dating back to the fall. of 2021.

What is the Ukraine-Russia conflict?

White House national security advisers place the number of russian soldiers around the Eastern European country at 130,000 and warning that Russia could invade “essentially at any time”.

Western governments have either pulled their diplomats out of Ukraine entirely or moved them further west in the country in recent weeks.

While the Russian government has repeatedly denied that he is planning an invasion and has maintained his right to maintain troops in any part of the country’s territory, past annexation and in progress Russian-backed separatist unrest in two of Ukraine’s eastern regions have left many people in a perpetual state of fear about Russia’s intentions towards its neighbour.

Despite warnings from the West about the current situation, the Ukrainian government has repeatedly tried to minimize panic and say that an attack was not imminent.

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On Monday, the Dutch airline KLM (KLM) had suspended flights to Ukraine and through the country’s airspace, while the German airline Lufthansa (DLAKF) and the British airline British Airways British Airways considered similar suspensions.

While the Ukrainian Ministry of Infrastructure noted that “most airlines continue to operate without restrictions”, insurance company withdrawals are likely to take a serious toll.

Not only will the country’s airline industry be affected, but also thousands of flights that cross the airspace to other European countries and beyond each week will be affected.

What happens now that the insurance companies are pulling out?

To maintain the flow of aircraft crossing its airspace, the Ukrainian government allocated 16.6 billion hryvnia (US$592 million) for independent insurance costs.

Ukrainian leader

But with more and more airlines withdrawing or reconsidering routes, the cost of flying in Ukrainian airspace may become too risky for airlines or insurance companies.

Another Ukraine-based carrier, SkyUp Airlines, was recently forced to land a plane carrying more than 170 passengers from the Portuguese island of Madeira in Moldova instead of kyiv, after the Irish company that rents its jets deemed it unsafe to enter Ukrainian airspace.

“Negotiations with insurers have been difficult and our overseas partners continue to regularly assess their own risks and monitor the situation,” SkyUp CEO Dmitry Seroukhov said in a statement Monday.

Kristan F. Talley