Redefining Risk: India Empowers Russian Insurers, Keeps Energy Lifeline Afloat

India has cleared three additional Russian insurers, including a unit of top lender Sberbank, to provide marine insurance to vessels arriving in Indian ports. This, cleared through a government notification issued today, is set to help Moscow maintain its oil exports to India, now the second-largest importer of Russian seaborne oil after China.

 

With the licenses granted to Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company, India now has eight Russian entities recognized to provide protection and indemnity (P&I) coverage for ships. The new licenses expire on February 20, 2026.

 

The sanction follows Western sanctions on Russia for its military intervention in Ukraine, which have hindered Moscow from selling oil by limiting the use of Western ships and insurance. Russian insurers, in contrast to the majority of world marine insurers, are not members of the International Group of P&I Clubs, which otherwise offers liability insurance cover for personal injury and environmental claims for the majority of the world's tankers.

 

To avoid these restrictions, Indian refiners have resorted more and more to purchasing Russian oil on a delivered basis, with sellers providing both ships and insurance. India's oil secretary previously stated that India will only buy Russian oil that is transported by firms and ships not subject to U.S. sanctions.

 

The decision marks India's continued reliance on Russian oil and its efforts to secure unbroken supplies amid growing global scrutiny and regulatory hurdles.

 

Source: Reuters