Sources have told Reuters that Russian National Reinsurance, the country’s state-owned reinsurer, has given financial backing to three insurers, enabling the Russian carriers to seek Indian approval to provide marine cover to tankers.
The news comes as Russia looks to facilitate trade with India following Western sanctions related to its ongoing invasion of Ukraine.
According to Reuters, an order posted on the website of the Indian shipping regulator, shows that insurers Sogaz Insurance, Alfastrakhovanie, and VSK Insurance have joined Ingosstrakh as carriers approved by India for providing marine insurance protection.
Two sources with direct knowledge of the matter have confirmed to Reuters that India has approved the three new insurers after Russian National Re provided a financial backstop.
“With the backing of the Russian National Reinsurance Company, a wholly-owned entity of the Russian Government, these insurers boast robust financial support and stability,” a source told Reuters.
The country’s national reinsurer and all three of the insurers did not immediately respond to Reuters’ request for comment, while India’s Directorate General of Shipping also failed to respond to a Reuters email seeking comment.
The three Russian insurers that have been approved by India specialise in protection and indemnity (P&I) insurance, but are not part of the International Group, which is comprised of 12 P&I clubs and which provides marine liability insurance for some 90% of global ocean-going shipping tonnage.
“A due procedure has been followed (by the Indian shipping regulator) for including these new entities in the list of non-IG companies that can provide insurance,” one of the sources told Reuters.
As Reuters highlights, the G7, the EU and Australia have imposed a $60 per barrel price cap for Russian oil if Western services, such as shipping and insurance, are utilised.
This cap means that Western firms are banned from providing maritime services, including financing, insurance, and shipping for oil sold above the cap, leading Russia to look to places like India.
According to a Reuters source at one of India’s refiners, Russia does not want to use Western services even if legally allowed to.
“Why would Russia like to forgo its revenue from insurance premiums and give it to the western insurers. It is not a small amount,” said the source.
