Britain and the European Union have agreed a coordinated ban on insurance for ships carrying Russian oil, the Financial Times newspaper reported, citing sources.

“According to British and European officials, the UK and the EU have agreed a coordinated ban on insuring ships that carry Russian oil,” the report said.

Thus, the sources said, the move would close Lloyd’s of London, the largest insurance market for Moscow, and would “sharply limit its ability to export crude oil” and could “force it to seek insurance opportunities in smaller, less developed markets.”

The newspaper’s interlocutors noted that Greece and Cyprus agreed to the proposal for such a ban after the UK’s commitment to follow suit. “The UK will announce the ban soon,” said sources briefed on the plans.

In addition, the newspaper reported that senior figures in Lloyd”s market have drawn the attention of British and European officials to the difficulties in establishing the origin of oil cargoes on ships.

As reported, EU countries on Tuesday night agreed on a sixth package of anti-Russian sanctions, which includes an embargo on imports of oil and oil products shipped from Russia by sea. It is expected to be officially approved in the coming days.

The Wall Street Journal newspaper, citing EU officials and diplomats, wrote that EU countries intend to impose a ban on insurance for tankers carrying Russian oil as part of the sixth package of sanctions against Russia.

European countries actively involved in maritime transportation – Greece, Cyprus and Malta – have expressed concerns about the introduction of a ban on insurance of oil tankers carrying Russian oil during discussions on the issue, the sources said. To ease these concerns, they said, it was decided that the ban would be introduced gradually over six months, rather than in one month as originally planned.