Published by Global Banking and Finance Review
Posted on April 24, 2025
By Nidhi Verma
NEW DELHI/MOSCOW (Reuters) -Three more Russian insurers, including a subsidiary of top lender Sberbank, have asked India for approval to provide marine insurance for oil shipments sent to Indian ports, two sources with knowledge of the matter said, as Moscow looks to maintain deliveries despite Western sanctions.
India has already approved five insurers from Russia, 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.
The move comes as growing scrutiny of Russia's oil supply chain by Washington and the European Union, including compliance with a price cap set by G7 for the use of Western ships and insurance, makes it increasingly difficult for Moscow to export its oil.
Russia is the top oil supplier to India for a third straight year in 2024-25 as New Delhi benefited on cheap supply after Western nations imposed sanctions on Moscow and curtailed their energy purchases in response to Russia's invasion of Ukraine.
India's shipping ministry is evaluating the plea from Sberbank Insurance, Ugoria Insurance Group and ASTK Insurance Company to offer protection and indemnity (P&I) coverage for ships, the sources said.
The three entities meet India's criteria for getting the authorisation and the ministry has to give the final clearance for the firms to be accredited, one of the sources said.
State-controlled Sberbank that owns Sberbank Insurance declined to comment. Sberbank Insurance, ASTK, Ugoria, India's shipping ministry and the Directorate General of Shipping did not respond to Reuters' requests seeking comments.
India is considering U.S.-sanctioned Sberbank Insurance as the nation follows only UN sanctions and not unilateral sanctions by any countries, said the source.
Insurance is essential for maritime transport, particularly oil cargoes that require the highest safety standards due to the risk of spills.
Indian refiners buy Russian oil on delivered basis with sellers providing vessels and insurance.
The addition of these three firms will increase the number of Russian insurance providers approved by India to eight, after it granted a permit to Soglasie Insurance Co Ltd in January.
However, Alfastrakhovanie, Sogaz Insurance Co. and Ingosstrakh are under sanctions by Washington while VSK Insurance is under UK government sanctions.
India's oil secretary said in February that it wants to buy Russian oil only if it is supplied by companies and ships that have not been subject to sanctions by the United States.
Last month, Indian port authorities denied entry to an ageing tanker loaded with Russian crude due to inadequate documentation, sources familiar with the matter had said.
(Reporting by Nidhi Verma and Reuters reporters in Moscow; additional reporting by Elena Fabrichnaya; Editing by Florence Tan and David Evans)
