The BRICS TimesIndia expands approved Russian insurers to secure oil shipments despite rising Middle East tensions and global supply risks.
Tensions between the US and Iran are rising near the Strait of Hormuz. This situation has sparked global fears regarding oil and gas supply chains. India has taken a proactive step to avoid any potential energy shortage. The government decided to increase the number of approved Russian insurance firms. These companies cover ships transporting crude oil to Indian ports. Previously, only 8 companies had permission to operate. Now, the Directorate General of Shipping (DGS) has approved 11 companies.
These firms provide Protection and Indemnity (P&I) insurance for vessels. No ship can operate in international waters without this essential cover. Western sanctions on Russia forced European insurers to withdraw their services. This created a massive logistical hurdle for India’s oil imports. India currently buys a significant volume of Russian crude oil. By approving more Russian insurers, India has effectively solved this shipping crisis.
Which Major Companies Received Approval?
Top Russian firms like Gazprom Insurance and Rosgosstrakh can now operate until 2027. Others like VSK, Sogaz, and Alfastrakhovanie have received long-term approval until 2030. This shows India is planning for long-term energy security. India also approved the Dubai-based Islamic P&I Club until early 2027. These additions provide more shipping options for the government. It reduces the risk of depending on just a few providers.
Rising Tensions in the Strait of Hormuz
This strategic move comes during a volatile period in the Strait of Hormuz. This narrow waterway is a vital artery for global oil trade. Any blockade there directly impacts major importers like India. India is the third-largest oil consumer in the world today. It has recently increased its intake of discounted Russian oil. Securing the transport route was essential for the national economy. This decision acts as a shield for India’s energy needs. It ensures that oil keeps flowing into the country without delays.
