Pirates paid $3.5m ransom
Somali pirates holding the MV Faina ship to ransom have been paid $3.5 million (£2.3 million) to release the ship, according to media reports.
The MV Faina, holding a cargo of Russian tanks, was hijacked four months ago.
Andrew Mwangura of the East African Seafarers Association said: “We hear they are counting the money but I don’t want to say any more until the crew is on dry land.”
Whilst the Ukrainian freighter’s 20-strong crew will be savouring their freedom, the ship’s owners will bemoan the high cost of the ransom – the highest paid to date for a hijacked ship.
In January, Saudi oil tanker the Sirius Star was released for a reported ransom of $3 million.
Piracy of the high seas was worth an estimated $30 million last year, according to the Royal Institute of International Affairs.
Although an international navy force now patrols the East African coastline, insurers fear that marine piracy could be on the increase.
Reinsurance giant Munich Re recently warned that the business model used by the Somali pirates could be mimicked around the world.
Category: Financials, Insurance News
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