3 Russian Insurance Firms Await Indian Approval To Provide Cover For Oil Tankers

As Western sanctions continue to tighten, three more Russian insurance firms have approached Indian authorities to seek approval for providing marine insurance cover for oil tankers arriving at Indian ports, according to sources familiar with the matter.

Among the applicants is Sberbank Insurance, a subsidiary of Russia’s largest lender, Sberbank, along with Ugoria Insurance Group and ASTK Insurance Company.

All three companies are seeking permission to offer protection and indemnity (P&I) coverage- a crucial form of insurance that handles liability claims like oil spills or crew injuries.

The Indian shipping ministry is currently evaluating their applications. One source noted that these firms meet India’s required criteria, and only final clearance from the ministry is pending.

If approved, the total number of Russian insurers cleared by India would rise to eight.

This shows Russia’s efforts to keep oil flowing to India despite increasing pressure by sanctions.

With Russia not part of the International Group of P&I Clubs, which provides liability cover to most of the global tanker fleet- it has been relying on alternative, local insurers to protect its shipments.

India has already approved five Russian insurers. In January this year, it gave clearance to Soglasie Insurane Co. Ltd.

However, several Russian insurers that have been cleared previously are facing sanctions themselves. Alfastrakhovanie, Sogaz Insurance Co., and Ingosstrakh are under US sanctions, while VSK Insurance faces restrictions from the UK government.

While Sberbank is also under US sanctions, a source clarified that India is reviewing the application because it does not follow sanctions imposed unilaterally by other countries, only those issued by the United Nations.

So far, Indian authorities and the Directorate General of Shipping have not commented publicly on the ongoing review. Sberbank Insurance and the other applicants also did not respond to requests for statements.

Russia has remained India’s top oil supplier for the third consecutive year in 2024-25. Indian refiners continue to benefit from discounted Russian crude, especially after Western countries scaled down energy imports in response to the Ukraine war.

Most Indian refiners buy Russian oil on a delivered basis, meaning sellers are responsible for providing both vessels and insurance. As a result, having enough approved insurers is critical for ensuring smooth deliveries.

Last month, Indian port authorities turned away an aging Russian oil tanker over issues with its documentation.

Indian oil secretary earlier said that the country aims to accept Russian oil only from suppliers and ships that are not under US sanctions, making insurance approvals even more important going forward.

Reference: Reuters

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