Black Sea Tanker War-Risk Insurance Reaches $2.5 Million, Simeonov Says

Evgeni Simeonov said war-risk insurance for a tanker crossing the Black Sea had climbed to about $2.5 million from roughly $200,000 in recent months, raising concerns about delivered crude costs and Bulgarian fuel prices.

Simeonov, special commercial manager for Lukoil’s Bulgarian operations, said Oct. 12 that the increase added about $2.3 million to the cost associated with insuring one voyage, or 12.5 times the earlier figure. He attributed the higher cost to attacks on commercial vessels and port infrastructure.

The $2.5 million figure applies to the vessel discussed by Simeonov and does not establish a single premium for every tanker operating in the Black Sea.

The Joint War Committee expanded its listed Black Sea risk area through circular JWLA-035 on Sept. 16, 2026. The area now covers the entire basin except the territorial waters of Türkiye, Romania, Bulgaria and Georgia.

The listed-area designation is used when assessing hull war, strikes, terrorism and related risks. It can result in additional coverage or reporting requirements for voyages, but it does not itself set the premium charged to a vessel.

Simeonov said Bulgaria had not experienced a canceled crude delivery and had supplies contracted through the beginning of December.

“As of today, we have not had a single refused oil delivery,” Simeonov said.

Bulgaria consumes between 5,000 and 6,000 metric tons of diesel per day, Simeonov said. Higher insurance and freight expenses can increase the delivered cost of crude and put pressure on Bulgarian fuel prices, although the effect at the pump has not been quantified.

The Black Sea carries crude oil, refined products and grain. A wider listed risk area increases the insurance and reporting considerations for those shipments, while the reported vessel-specific figure highlights the added cost facing at least some voyages.

Bulgaria’s contracted supplies through the beginning of December provide the next near-term reference point for whether higher shipping costs affect crude deliveries and local fuel prices.