Western officials and Ankara are in talks after stand-off on oil tanker pile-up near Turkey
The UK, US, and EU are working with Ankara to clear an oil tanker pile-up in Turkish waters.
Oil tankers have begun piling-up off Turkish shores, as Ankara demands proof of insurance coverage.
EU's $60 a barrel price cap on Russian crude kicked in Monday, which is impacting shipping and insurance.
Western officials are trying to resolve an oil tanker pile-up in Turkish waters, after Ankara unusual demand for full proof of insurance for ships passing through its waters.
The European Union, G7, and Australia have set a $60 a barrel price cap for Russian crude that kicked in on Monday. The move's designed to limit Moscow's energy revenues while keeping the global energy markets stable by keeping supply flowing.
However, the market has been disrupted just one day into the restriction, as oil tankers pile up off the coast of Turkey after officials demanded proof that the vessels are properly insured — but the shippers say Turkish authorities are demanding for coverage above what they can provide that could expose them to a breach of sanctions.
Western governments have now stepped in to resolve the standoff.
On Wednesday, Wally Adeyemo, the deputy secretary of the US Treasury, told Sedat Onal, the Turkish deputy foreign minister, the price cap only applies to oil originating from Russia and "does not necessitate additional checks on ships passing through Turkish territorial waters," according to a readout from the Treasury Department.
The British Treasury told Insider the UK, US, and EU are working to resolve the issue with Ankara and the shipping and insurance industries. "There is no reason for ships to be denied access to the Bosporus Straits for environmental or health and safety concerns," it said in a statement.
Most vessels in Turkish waters now are loaded with oil from Kazakhstan, not Russia, two Western officials told the Financial Times on Thursday.
Moscow, on its part, has said it would not sell its crude oil under $60 a barrel. It is considering several options to counter the price cap, Russian business daily Vedomosti reported Wednesday, citing two sources close to the cabinet.
Russian deputy foreign minister Alexander Grushko also weighed in on the matter, saying Russia's concerned about the congestion off Turkey.
"We are aware of this situation. Of course, it causes us concern from the point of view of the interests of our operators. This problem is being discussed with transport and insurance companies. After all, insurance companies insure, not the state," said Russian deputy foreign minister Alexander Grushko on Wednesday, per state news agency RIA Novosti.
"If the problem is not solved, of course, there will be involvement on the political level."
A European Commission spokesperson told Insider it's working with Turkish authorities resolve the situation
"This situation is not due to the G7 oil price cap, since there is, in any case a 45-day wind-down period for seaborne Russian crude oil purchased before 5 December," said the EC spokesperson, adding that shipping services including insurance can still be provided in this period. Turkish authorities still need to verify insurance policies of tankers just like they did before even after the wind-down period ends on January 19.
"Participation in the international price cap coalition does not lead to a blanket ban on certain flag-states or types of vessels," the EC spokesperson added.
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