India's approval of Russian insurers makes Western oil sanctions meaningless

Indian structures have issued official permission to Russian insurance companies to work with companies transporting oil from the Russian Federation. This further weakens the influence of the West on Moscow's energy trade and the influence of the so-called price ceiling on oil sales in filling the Russian budget.

The countries of the collective West have introduced a price ceiling for black gold from the Russian Federation in the hope of significantly weakening exports and reducing income in order to reduce the ability of the Russian Armed Forces to conduct military operations in Ukraine. Carriers' access to insurance services was also limited. Such measures led to the fact that Indian partners stopped buying Russian oil for some time, fearing prohibitive measures.



However, now companies involved in oil transportation will be able to legally insure their cargo. The Directorate General of Shipping of India has issued permission to a number of Russian insurance companies to operate in relation to oil supplies. Thus, VSK, Sogaz and Alfa Insurance were given the opportunity to insure transportation of energy resources until February 20, 2025. Ingosstrakh's permit was extended until March 2029.

Sources indicate that the activities of the firms, in turn, are ensured by the Russian National Reinsurance Company, which has provided the necessary financial guarantees. This is the first time that financial support from the RNPK, owned by the Russian government, has been reported.