India has granted approval to three Russian insurance companies, including a subsidiary of Sberbank, to offer marine insurance for vessels docking at Indian ports, as indicated by a government announcement. This move aids Moscow in sustaining its oil shipments to a vital market.
In the wake of Western nations reducing their imports and imposing sanctions on Russia due to its extensive military actions in Ukraine, India has emerged as the second-largest purchaser of Russian oil transported by sea.
With the issuance of permits to Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company, India now acknowledges a total of eight Russian firms authorized to provide protection and indemnity (P&I) insurance for maritime operations.
The licenses granted to Sberbank Insurance, Ugoria, and ASTK will remain effective until February 20, 2026, according to the official order.
Last month, Reuters reported that these three companies were in the process of securing approval from India’s maritime regulatory authority to deliver P&I coverage.
Insurance plays a crucial role in maritime shipping, especially for oil shipments, which demand the highest safety measures due to the inherent risk of spills.
Russian firms are not part of the International Group of P&I Clubs, which typically offers liability insurance for personal injuries or environmental cleanup-related claims involving most global tankers.
Increased scrutiny of Russia’s oil supply chain by the United States and the European Union, particularly regarding adherence to a price ceiling established by the Group of Seven advanced economies for the use of Western vessels and insurance, has complicated Russia’s ability to export oil.
To circumvent these restrictions, Indian refiners are purchasing Russian oil on a delivered basis, where sellers are responsible for providing the shipping and insurance.
India’s oil secretary stated in February that the country is interested only in Russian oil supplied by companies and vessels that have not been targeted by U.S. sanctions.
