India has expanded the number of Russian insurers permitted to provide protection and indemnity (P&I) cover for vessels docking at its ports, as Indian refiners accelerate purchases of Russian crude oil under the cover of a temporary U.S. sanctions waiver, OilPrice.com reports.
Directorate General of Shipping Expands Approved List
India's Directorate General of Shipping raised the number of eligible Russian P&I insurers to 11, up from eight previously, according to a statement carried by Reuters. The move represents a regulatory adjustment aimed at facilitating the smoother arrival of Russian oil-carrying vessels at Indian ports amid a surge in import volumes.
The Russian insurers on the approved list operate outside the International Group of P&I Clubs — the dominant global body for marine liability cover — but they provide the necessary indemnity for vessels loaded with Russian oil. Western insurers have largely withdrawn from covering such cargoes in recent years as a consequence of the sweeping sanctions imposed by Western governments on Russia's oil exports.
US Waiver Triggers Rush for Russian Crude
The regulatory change in India coincides with a sharp uptick in Russian crude imports driven by a U.S. government sanctions waiver. The U.S. issued the first such waiver in March, prompting Asian refiners, including those in India, to move quickly to secure Russian oil cargoes. Shipping data showed that several tankers originally bound for China diverted course to deliver their loads to Indian buyers following the initial waiver.
The scale of the buying activity was significant. Energy analytics firm Vortexa reported that in just the first two weeks of March, the volume of Russian crude on the water fell by more than 20 million barrels — equivalent to a drawdown rate of over 2 million barrels per day.
The U.S. Treasury Department subsequently extended the waiver for a further two weeks, keeping it in force until mid-May, giving refiners additional time to arrange purchases and logistics.
Context: India's Position in Global Oil Markets
India is the world's third-largest crude oil importer, making its purchasing decisions a significant factor in global oil trade flows. Earlier this year, the U.S. had discouraged India from maintaining high volumes of Russian oil imports. The issuance and extension of the sanctions waiver, however, has provided Indian refiners with a clear, if temporary, window to boost those purchases.
With the mid-May waiver deadline approaching, market participants are watching closely to see whether the exemption will be extended further or whether Indian refiners will need to reassess their procurement strategies in the weeks ahead.
