In a calculated move to safeguard its energy imports, India has granted approval to three additional Russian insurers—Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company—to provide marine insurance coverage for ships docking at Indian ports. This decision strengthens India’s trade ties with Russia and ensures the uninterrupted flow of Russian oil, despite mounting Western sanctions on Moscow.
Strategic Energy Partnerships
India has emerged as one of the largest buyers of Russian seaborne oil, second only to China. With Western nations imposing restrictions on Russian exports, India has strategically positioned itself to maintain a steady supply of crude oil by recognizing Russian insurers for maritime coverage. The latest approvals bring the total number of Russian entities eligible to provide Protection and Indemnity (P&I) coverage to eight.
Navigating Sanctions and Trade Barriers
Western sanctions have complicated Russia’s ability to export oil, particularly due to compliance requirements set by the Group of Seven (G7) nations, which limit the use of Western ships and insurance. To circumvent these restrictions, Indian refiners have opted to purchase Russian oil on a delivered basis, where sellers provide both vessels and insurance. The newly approved insurers will play a crucial role in facilitating these transactions.
Implications for Global Energy Markets
India’s decision underscores its commitment to securing affordable energy supplies while maintaining diplomatic autonomy. The permits for Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company are valid until February 20, 2026. This move is expected to bolster Russia’s oil exports to India, further solidifying their economic partnership.
As geopolitical tensions continue to shape global trade dynamics, India’s approach to energy security remains pragmatic. By expanding its list of approved Russian insurers, New Delhi is ensuring stability in its oil imports while navigating the complexities of international sanctions.
