More Russian Insurers Seek Indian Approval For Oil Tanker Coverage

Moscow/ New Delhi (Reuters) – As Western sanctions continue to tighten around Russia’s oil export mechanisms, three additional Russian insurance firms including a subsidiary of Russia’s largest lender, Sberbank have approached Indian authorities seeking approval to provide marine insurance for oil shipments to Indian ports. The ministry is currently reviewing the applications, and the final decision rests with Indian authorities.

India has already approved five insurers from Russia in January, which has no insurance firms in the International Group of P&I Clubs, which provides liability cover for personal injury or environmental clean-up claims for the majority of the world’s tankers. If approved, the number of Russian insurers authorized to provide marine cover for oil exports to India will rise to eight.

The move comes amid increasing oversight from the United States and European Union, particularly concerning compliance with the G7-imposed price cap, which restricts the use of Western ships and insurance for Russian oil. Russia, excluded from the International Group of P&I Clubs, relies on alternative insurance providers to ensure continued exports

Despite global pressure, India remains the top buyer of Russian oil for the third consecutive year, capitalizing on discounted rates following Moscow’s reduced access to Western markets. Indian refiners typically purchase Russian crude on a delivered basis, with sellers providing the tankers and insurance.

India’s oil ministry has reiterated its preference for Russian oil supplied through non-sanctioned entities and compliant vessels, even as geopolitical complexities continue to evolve.