The UK Government says Russian aviation companies are banned from accessing Lloyd’s and the London Market, as sanctions following the invasion of Ukraine ramp up.

The Times of London reports that this could be a “death blow” to the Russian aviation industry.

“Russian companies in the aviation or space industry will be prevented from making use of UK-based insurance or reinsurance services directly or indirectly,” the UK Government says in a press release.

“These further economic sanctions will limit the benefits Russian entities receive from their access to the global insurance and reinsurance market.

“Through Lloyd’s and the London Market, the UK is a world leader in these sectors of the global insurance market. In taking such action, the UK is demonstrating its commitment to apply severe economic sanctions in response to Russia’s invasion of Ukraine.”

The UK Government says it will bring in legislation to prohibit UK-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity, or for use in Russia.

“Further details of the legislation will be available in due course,” it says.

“Coupled with similar actions by the EU, this move further isolates Russia’s economy from the international financial system.”

insuranceNEWS.com.au asked the Insurance Council of Australia (ICA) if it has taken part in any discussions with the Federal Government about sanctions involving the insurance industry.

“The Australian insurance industry stands with the people of Ukraine at this terrible time,” an ICA spokeswoman said.

“Like all financial services, Australian insurers are complying with any sanctions imposed by our Government, and if they have overseas parent companies those companies are complying with sanctions imposed by the governments of the countries in which they are headquartered.”

In a statement to the Australian Securities Exchange today, insurer QBE says it is “deeply saddened and concerned by the events unfolding in Ukraine”.

“While the situation is dynamic, QBE has limited exposure to the country and any insured losses associated with the conflict would not have a material impact to the group.”