India Expands Russian Insurer List Amid Iran Conflict Disrupting Oil Flows
India expands Russian insurer list as Iran conflict disrupts oil flows
Business Standard
Image: Business Standard
India has increased the number of Russian insurers permitted to cover vessels at its ports from eight to eleven, responding to disruptions in oil shipments through the Strait of Hormuz due to ongoing conflicts. This move supports India's status as the largest buyer of Russian crude oil amid geopolitical tensions.
- 01India has allowed 11 Russian insurers to provide coverage for vessels, up from eight last month.
- 02The expansion comes as the Strait of Hormuz faces significant disruptions affecting oil shipments.
- 03India is the world's largest buyer of Russian crude oil, increasing reliance on these supplies.
- 04The US Treasury extended a waiver for foreign buyers of Russian crude until mid-May.
- 05Sanctions on Russian insurers complicate traditional marine liability coverage options.
Advertisement
In-Article Ad
India has expanded its list of approved Russian insurers for vessels calling at its ports, increasing the number from eight to eleven. This decision comes in response to significant disruptions in oil shipments through the Strait of Hormuz, which has been severely impacted by ongoing conflicts involving the US, Israel, and Iran. The Strait's traffic is nearly at a complete standstill, prompting India, the world's largest buyer of Russian crude oil, to rely more heavily on Russian supplies. The US Treasury recently extended a waiver allowing foreign buyers to import Russian crude until mid-May. Among the newly approved insurers are Gazprom Insurance Ltd., Rosgosstrakh Insurance Co., and Balance Insurance JSC, with some approvals extending into next year. This expansion highlights the challenges faced due to sanctions on Russian vessels, which are not covered by the International Group of P&I Clubs, the traditional provider of marine liability insurance for about 87% of global shipping tonnage.
Advertisement
In-Article Ad
This expansion may help stabilize India's crude oil supply and prices, potentially affecting fuel costs for consumers in India.
Advertisement
In-Article Ad
Reader Poll
Do you think India should continue to rely on Russian crude oil imports?
Connecting to poll...
Read the original article
Visit the source for the complete story.
