The EU price cap on Russian oil is already disrupting the market - tankers are piling up off Turkey after Ankara demands insurance paperwork

• On Monday, the EU's price cap on Russian crude went into effect.

• Ankara demands proof of insurance coverage for oil tanker's as they pile up off Turkish shores.

• Turkey is asking for coverage that could expose them to a violation of sanctions.

As a result of the European Union price cap on Russian oil, oil tanker are piling up off the coast of Turkey, as Ankara demands paperwork that the vessels are fully insured, according to the Financial Times.

Just as the EU price cap for Russian crude kicked in, the pile-up came.

The aim is to curb Russia's oil revenue by limiting how much coverage the insurers can provide, because only those vessels with a price below the EU cap can access Western maritime insurance.

The Turkish government wants full insurance coverage for the ships, leading to a standoff and traffic jam of 19 crude oil tanker waiting to cross Turkish waters, according to the Financial Times.

Gard, a Norwegian shipping insurer, said in a statement on Monday that Turkey's government insists on documentation of shipping insurance coverage even when the ships violate sanctions.

The International Group of P&I Clubs, the protection and indemnity providers which represents a group of shipping insurers, has decided not to issue a letter to ships because of these requirements.

The Club would be in violation of EU, UK and US law if it issued a confirmatory letter. The Turkish government is in talks with the International Group of P&I clubs.

Traffic around the Turkish straits of Bosphorus and Dardanelles has been disrupted because of the standoff. The first ship arrived at the location on November 29th.

Turkey's ministry of transport and infrastructure did not reply immediately to Insider's request for comment.

Russian deputy prime minister Alexander Novak called the price cap an interference that could cause destabilization, shortages of energy resources and reduction of investment in the market.

Novak said on Sunday that it could be applied to other products on the market as well.

The US West Texas Intermediate oil futures were up 0.8%. International crude oil futures were up 0.8%.

Business Insider has an article on it.