India has granted approval to three Russian insurers, including a unit of Sberbank, to offer marine insurance for ships arriving at Indian ports. This decision is part of efforts to maintain Russian oil exports to India, especially as Western nations continue to impose sanctions on Russia due to its military actions in Ukraine.
Approved Russian Insurers
The approved insurers include:
- Sberbank Insurance
- Ugoria Insurance Group
- ASTK Insurance Company
With this approval, India now recognizes eight Russian entities authorized to provide protection and indemnity (P&I) coverage for ships. These permits are valid until February 20, 2026.
Importance of Marine Insurance for Oil Cargoes
Insurance is essential for maritime transport, particularly for oil cargoes, as they require the highest safety standards to mitigate the risk of spills. The approved Russian insurers will ensure that these safety standards are met for ships transporting Russian oil to India.
Challenges Due to International Scrutiny
Although these Russian insurers are not part of the International Group of P&I Clubs, which offers liability coverage for most of the world’s tankers, they provide an alternative solution for Russian oil exports to India. This comes amid growing scrutiny from the U.S. and European Union on Russia’s oil supply chain, particularly with regards to compliance with the price cap set by the Group of Seven democracies.
India’s Strategy for Russian Oil Imports
To navigate the restrictions on Russian oil, India’s refiners purchase the oil on a delivered basis, with the sellers providing vessels and insurance. This approach ensures that India continues to import Russian oil without violating U.S. sanctions.
