BAKU, Azerbaijan, June 24. Insurance plays a central role in the development of the Black Sea and Trans-Caspian energy corridors, said Dmytro Gamankov, Senior Underwriter for Central and Eastern Europe and international markets at reinsurance company VIG Re, at the Azerbaijan International Insurance Forum in Baku, Trend's correspondent reports from the event.
"Energy corridor projects across the Black Sea and Caspian Sea are not only infrastructure initiatives — they require a robust risk management and insurance framework. From the insurance and reinsurance perspective, this is not just a story about energy, sustainability and strategic ambitions. It is a story about risk, resilience and trust. Projects like these are built not only through engineering. They are built on trust — in legislation, in counterparties, and most importantly, on the confidence that if something goes wrong, the system will not suffer irreversible damage. That is where insurance plays a central role," he said.
Gamankov noted that the Black Sea Energy Corridor concept emerged against the backdrop of the European Union's drive to diversify its energy supply and accelerate the green transition.
"In 2023, the governments of Azerbaijan, Georgia, Romania and Hungary decided to connect their power grids via an undersea cable across the Black Sea to transmit renewable energy to Europe. The cable will stretch approximately 1,200 kilometers. Upon completion, it will be the world's longest high-voltage direct current cable connecting the power systems of different countries," he said.
Gamankov also touched on the Trans-Caspian Energy Corridor, noting that Kazakhstan, Uzbekistan and Azerbaijan are exploring a similar project beneath the Caspian Sea.
"European demand for energy resources will persist in the long term, which is why the feasibility of laying an undersea cable across the Caspian is also being studied. The Black Sea energy cable will have a transmission capacity of around one gigawatt upon completion — comparable to a large power plant or a single nuclear reactor unit. That is enough to power approximately 500,000 households," he said.
The VIG Re executive stressed that the project has already moved beyond the conceptual stage, with key participants identified, routes being mapped out, power grid integration being planned and the need for clearer underwriting approaches growing.
"Recently, the governments of the participating countries have been actively discussing the initiative's further development. Kazakhstan's parliament has already ratified the relevant agreements, while Georgia and Romania are exploring options to expand the project, including the construction of additional infrastructure alongside the energy cable," Gamankov said.
