The proposed legislation would see the Japanese government and shipping companies sign an insurance contract and the shipping companies would pay the premiums to the government.
The Japanese government would seek to pass the new legislation by early June if the 1 July EU proceeds, according to local reports.
Around 90% of the world's tanker insurance is based in the West, hence the EU measures threaten shipments to Iran's top Asian buyers like China, India, Japan and South Korea.
The Japan P&I club would be forced to slash its cover on oil spills for a tanker carrying Iranian oil to $8m from 1 July versus $1bn now.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.