India provides marine insurance to RF companies for oil transportation

India has granted marine insurance permits to four Russian firms. Now Moscow will not need the services of Western companies when transporting oil.

This was reported by RBC-Ukraine with reference to Bloomberg.

The Russian companies VSK Insurance Company, Sogaz Insurance Company, and AlfaStrakhovanie have received permission for marine insurance until February 20, 2025, and the term of the Ingrosstrakh insurance company has been extended until March 2029.

"Insurance coverage from all four providers is backed by the Russian State National Reinsurance Company," the publication writes.

Russia uses Western insurers for its tanker fleet that exports oil to India. However, the oil price ceiling of $60 per barrel has given them leverage over oil flows. Bloomberg writes that the use of its own insurance services will help reduce Moscow's dependence on Western companies and reduce its loyalty to Indian buyers.

Russia is the largest supplier of crude oil to India. In April, India's oil imports from Russia amounted to about 1.72 million barrels per day, the highest since July.

So before that, Western companies were quietly insuring Russian ships despite the sanctions? Why are sanctions against Russia needed at all?

Author - Serhii Kolomiets, 26/04/2024