Amidst the growing tensions in the Strait of Hormuz and global energy uncertainty, India has played a major strategic card to ensure its energy security. The Directorate General of Shipping (DGS) has expanded the list of approved Russian maritime insurance providers to facilitate the seamless import of Russian crude oil. By increasing the number of authorized Russian insurers from 8 to 11, India aims to bypass the hurdles created by Western sanctions and geopolitical instability.

Bypassing Western Sanctions
Due to the sanctions imposed by Western nations, major European insurance firms have significantly reduced coverage for vessels carrying Russian oil. To counter this, India has granted long-term approvals to major Russian firms like Gazprom Insurance, Rosgosstrakh, and VSK. While some approvals extend to 2027, key players have been authorized to provide Protection and Indemnity (P&I) cover until 2030, ensuring a stable long-term solution for oil logistics.

Strategic Impact on Energy Security
As the world’s third-largest oil consumer, India relies heavily on affordable imports. The blockade or volatility in the Strait of Hormuz often threatens global supplies, but India’s latest move creates a dedicated safety net. This policy ensures that Russian tankers can dock at Indian ports without relying on Western financial or insurance systems, effectively insulating India’s energy needs from global diplomatic pressures for the next several years.

At a Glance

India increases authorized Russian maritime insurers from 8 to 11.

Key insurance firms granted operational approval until 2030.

Strategy aims to bypass Western sanctions and European insurance hurdles.

Move ensures uninterrupted oil supply despite tensions in the Strait of Hormuz.