Three additional Russian insurers, including a subsidiary of Sberbank, have applied for approval from India to provide marine insurance for oil shipments to Indian ports, according to Reuters.
India has previously approved five Russian insurers, as Russia lacks representation in the International Group of P&I Clubs, which offers liability coverage for most of the world's tankers.
The applications from Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance Company are under evaluation by India's shipping ministry.
"The three entities meet India's criteria for getting the authorisation," one source stated, adding that the ministry must provide final clearance for accreditation.
Sberbank Insurance is under U.S. sanctions; however, India considers only United Nations sanctions in its decisions, not unilateral sanctions from other countries.
Marine insurance is essential for oil cargoes due to the high safety standards required. Indian refiners purchase Russian oil on a delivered basis, with sellers providing vessels and insurance.
Approval of these three firms would increase the number of Russian insurers authorized in India to eight.
Previously approved Russian insurers include Soglasie Insurance Co Ltd, Alfastrakhovanie, Sogaz Insurance Co., Ingosstrakh, and VSK Insurance. Some of these firms are under sanctions: Alfastrakhovanie, Sogaz Insurance Co., and Ingosstrakh by the U.S., and VSK Insurance by the U.K.
India's oil secretary stated in February that the country aims to purchase Russian oil only if supplied by companies and ships not subject to U.S. sanctions. In March, Indian port authorities denied entry to an aging tanker carrying Russian crude due to inadequate documentation.