Introduction

India has expanded its support for Russian insurers to ensure the continuous flow of discounted Russian seaborne crude. This move comes in response to the US imposing fresh sanctions earlier this month, highlighting the critical role of marine insurance in the maritime industry.

Extended Approvals for Russian Insurers

India’s Directorate General of Shipping has authorized Soglasie Insurance Co. to provide insurance for vessels entering Indian ports until February 2026. This approval is significant as Soglasie is not blacklisted by any western nation, offering a safe option for tanker operators. Controlled by billionaire Mikhail Prokhorov, Soglasie accounted for about 3% of Russia’s general insurance market last year.

Impact of US Sanctions

The US sanctions, imposed on January 10, targeted oil tankers, energy producers, exporters, trading firms, and major Russian providers of protection and indemnity insurance for vessels, including Ingosstrakh Insurance Co. and Alfastrakhovanie. India’s shipping watchdog extended approvals for Alfastrakhovanie and Sogaz Insurance Co. until February 2030, while the permit for Ingosstrakh remains intact until February 2029. A permit for VSK, sanctioned by the UK, has also been extended until February 2030.

India’s Oil Imports from Russia

India, the world’s third-largest oil consumer, imported about 1.8 million barrels a day from Russia in 2024, accounting for 37% of its total shipments from overseas. This highlights the importance of maintaining reliable marine insurance options for the maritime sector.

Conclusion

India’s extension of support for Russian insurers is a strategic move to safeguard its oil imports amid US sanctions. This development underscores the complex interplay between geopolitics and the maritime industry, particularly in the realm of marine insurance.

Sources:

• India widens approvals for Russian insurers after oil sanctions
• India expands Russian insurers’ pool after US sanctions
• Indian Oil to Rebalance Crude Buying After Russia Sanctions
• Middlemen have halted Russian oil cargo offers after US sanctions, Indian refiner says
• India is staring at an oil shock as U.S. sanctions on Russian crude loom
• India Rushes to Pay for Russian Oil Ahead of Sanctions Cutoff
• Govt widens approvals for Russian insurers after US oil sanctions
• India is staring at an ‘oil shock’ as U.S. sanctions on Russian crude loom