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India provides marine insurance to Russian companies for oil transportation - Bloomberg

India provides marine insurance to Russian companies for oil transportation - Bloomberg Archive photo: India has provided marine insurance to companies from Russia (Getty Images)
Author: Daryna Vialko

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

Russian companies VSK Insurance, Sogaz Insurance Co., and Alfastrakhovanie PCL have got a permit for marine insurance until February 20, 2025, and Ingrosstrakh Insurance Company's permit was extended until March 2029.

"Insurance coverage from all four providers is backed by state-run Russian National Reinsurance Co.," the agency reported.

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 were at around 1.72 million barrels per day, the highest since July.

Sanctions against the Russian oil sector

The G7 members, the EU, and Australia have imposed a price ceiling on Russian oil and oil products. This was supposed to reduce the Kremlin's revenues, but Russia has circumvented these sanctions and continues to make money on oil supplies.

Bloomberg recently reported that Russia is selling its flagship Urals crude for $75 per barrel, a quarter more than the price ceiling set by the G7 members.

Yesterday, Reuters reported that Russia's oil and gas revenues would almost double year-on-year to $14 billion in April 2024 due to rising prices.