Three additional Russian insurers have requested approval from India to provide marine insurance for oil shipments destined for Indian ports. This includes a subsidiary of Sberbank, Russia’s largest lender. The move seeks to sustain oil deliveries from Russia amid increasing Western sanctions. Previously, India had authorized five Russian insurers to operate in this domain.
Notably, Russia lacks representation in the International Group of P&I Clubs, which offers essential liability coverage for injuries and environmental damages associated with global tanker operations. As scrutiny of Russia’s oil supply chain rises from the United States and the European Union, including monitoring compliance with a G7-set price cap for Western shipping and insurance, Moscow faces challenges in maintaining its oil exports. For the third consecutive year, Russia remains India’s leading oil supplier, with New Delhi capitalizing on lower-priced Russian crude following Western sanctions imposed after the invasion of Ukraine. The Indian shipping ministry is currently assessing proposals from Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company to provide protection and indemnity (P&I) coverage for maritime vessels.
These insurers reportedly meet India’s criteria for approval, although final clearance from the ministry is still pending. Despite requests for comment, Sberbank Insurance and India’s shipping ministry were unavailable for further discussion. India’s stance involves adhering only to UN sanctions, not those imposed unilaterally by other nations. Maritime insurance is crucial for transporting oil, particularly given the associated risks of spills.
Currently, Indian refiners procure Russian oil on a delivered basis, with sellers providing both vessels and insurance. If approved, the inclusion of these three firms would elevate the total number of Russian insurance providers recognized by India to eight. However, it’s worth noting that several existing insurers face sanctions from Western countries, impacting their operations.