“Russian companies have increased the insurance of oil cargoes to India to 60%, which allows oil to be sold above the price ceiling of the G7 countries of $60.”, — write: www.epravda.com.ua
Russian companies have increased the insurance of oil cargoes to India to 60%, which allows oil to be sold above the price ceiling of the G7 countries of $60.
This is reported by the Reuters agency.
By using Russian insurers, Moscow is able to sell oil at more than $60 a barrel, above a cap set by the G7, the European Union and Australia to limit Russia’s oil revenues after its invasion of Ukraine.
Over 60% of Russia’s seaborne oil supplies go to India. Western services, such as shipping and insurance, can only be used for Russian cargo sold at a price that does not exceed the set limit.
Earlier this year, India approved several Russian insurance companies to provide marine insurance after Russia’s state-owned National Reinsurance Company provided financial guarantees.
In July, India overtook China to become the largest buyer of Russian oil, even though China receives supplies via pipelines and sea. It was India that became the main market for Russian oil from 2022, when the EU embargo came into force.
Insurance for the remaining 40% of tankers carrying oil to India in July was provided by Western companies. Russian insurance companies are mostly used by oil carriers with close ties to Russia, such as the Russian shipping company Sovcomflot.
Shipping companies from countries such as Greece, the United Arab Emirates and China are more likely to use Western insurance when transporting Russian oil, data show.
While many Western insurers have stopped covering Russian oil shipments due to fears of a breach of the G7 price ceiling, some still continue to provide coverage.