According to a government statement, India has authorized three Russian insurers, including a division of leading lender Sberbank, to offer marine insurance to ships landing at Indian ports, assisting Moscow in preserving oil supplies to a vital market. Since Western countries banned purchases and placed sanctions on Moscow for its military involvement in Ukraine, India has become the second-largest customer of Russian seaborne oil after China.
India now recognizes eight Russian companies that are qualified to offer protection and indemnity (PI) coverage for ships after giving permits to Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company. According to the order, Sberbank Insurance, Ugoria, and ASTK’s permits are good until February 20, 2026.
According to reports, the three organizations were requesting permission to offer PI cover from the Indian shipping regulator. For sea transportation, insurance is crucial, especially for oil shipments that need the greatest safety standards because of the possibility of spillage. The International Group of PI Clubs, which offers liability coverage for environmental cleanup or personal injury claims for most tankers worldwide, does not include Russian firms.
It has become more challenging for Moscow to export its oil as a result of increased scrutiny of Russia’s oil supply chain by the US and the EU, including adherence to a price cap set by the Group of Seven democracies for the use of Western ships and insurance. Indian refiners purchase Russian oil on a delivered basis, with sellers offering vessels and insurance, in order to get over the embargo. In February, India’s oil secretary stated that it only wished to purchase Russian oil from vessels and businesses that were exempt from US sanctions.
