Russia's Central Bank to Inject $1.96 Billion into State Reinsurer Amid Rising Attack Risks

Russia's central bank will inject an additional 165 billion roubles, equivalent to about $1.96 billion, into the capital of the state-owned national reinsurance company in September, Governor Elvira Nabiullina said on Friday.

The decision responds to heightened risks of attacks and sabotage, which have driven up demand for insurance coverage and pushed premiums higher. In recent months, Ukraine has launched hundreds of drones deep into Russian territory, targeting economic assets including oil refineries and e-commerce warehouses.

International reinsurers pulled out of the Russian market after the conflict began in 2022, leaving the national reinsurance company, which is owned by the central bank, as the principal player in the sector. The company is subject to both U.S. and European Union sanctions.

Nabiullina told a news conference that the additional capital would allow the company to meet all of its obligations. She noted that the firm now effectively reinsures all risks tied to terrorism and sabotage while continuing to offer reinsurance services to key sectors on preferential terms.

The rouble was quoted at 84.1609 per dollar at the time of the announcement.