- Advertisment -
HomeEconomyIndian security cover to Russian oil tankers through Dubai based subsidiary of...
- Advertisment -

Indian security cover to Russian oil tankers through Dubai based subsidiary of Sovcomflot MPNRC

- Advertisment -
- Advertisement -

India is providing safety certification for dozens of vessels managed by a subsidiary of top Russian shipping conglomerate Sovcomflot, official data shows, after Western certifiers withdrew their services due to global sanctions against Moscow and India and others. Enables oil exports on site.

- Advertisement -

Certification by the Indian Register of Shipping (IRClass), one of the world’s top classification companies, provides a final link in the paperwork chain – after insurance coverage – to keep state-owned Sovcomflot’s tanker fleet afloat and Russian crude oil. needed to be transported to foreign markets. ,

Data compiled from the IRClass website shows that it has certified over 80 vessels managed by SCF Management Services (Dubai) Limited, a Dubai-based entity listed as a subsidiary on Sovcomflot’s website.

- Advertisement -

An Indian shipping source familiar with the certification process said that most of Sovcomflot’s ships had now moved to IRClass through the Dubai branch.

- Advertisement -

Classification committees certify that ships are safe and seaworthy, which is essential for securing insurance and gaining access to ports.

Russia’s crude oil fields, hit by tough sanctions caused by Moscow’s invasion of Ukraine, have been forced to seek buyers outside the West, turning to Russian transporters and insurance companies to handle their exports.

India, which has avoided condemning Russia given its longstanding security ties, has sharply increased purchases of Russian crude in recent months.

Russia’s crude oil fields, hit by tough sanctions caused by Moscow’s invasion of Ukraine, have been forced to seek buyers outside the West, turning to Russian transporters and insurance companies to handle their exports.

India, which has avoided condemning Russia given its longstanding security ties, has sharply increased purchases of Russian crude in recent months.

This gave Indian refiners, who rarely bought Russian oil because of the high freight cost, to switch to lower-priced crude. The share of Russian grades in India’s total oil imports in May was around 16.5 per cent, compared to around 1 per cent in 2021.

high range

India’s Ship Certifier is one of the 11 members of the International Association of Classification Societies (IACS), the top-tier certifiers responsible for over 90% of the world’s cargo-carrying tonnage.

The Russia Maritime Register of Shipping was also part of the group until March, when its membership was withdrawn after a vote by 75% of the IACS members. Membership in the IACS, which sets technical standards, typically makes a certifier more attractive to insurers, porters, flag registries and shipowners seeking safety assurances.

The four major IACS members, the UK, Norway, France and the United States, have stopped providing services to Russian companies due to sanctions.

However, a spokesperson for IRClass when asked about certification data for Sovcomflot’s fleet, replied: “The Indian Shipping Register, as an international ship classification society, reiterates that we have not classified those vessels which are owned, flagged or managed by Russian companies.

The spokesperson declined to comment further on the matter, including the Dubai entity’s ties to its Russian parent.

Sovcomflot is subject to sanctions and other sanctions by the UK and the European Union, while Washington has restricted its financial activities. The company did not immediately respond to a request for comment.

An IACS spokesperson said IRClass’s action was not a matter of discussion by the association.

“IACS is not involved in the operational and commercial activities of its members, including assessment, approval surveys and testing of ships and equipment and the issuance of classification and statutory certificates where authorized,” he said.

“As such, these developments are not discussed within the association.”

The chief executive of Sovcomflot told reporters last week that the group had insured all its cargo ships with Russian insurers and the cover met international regulations.

People familiar with the situation told Reuters this month that the state-controlled Russian national reinsurance company had become the main reinsurer of Russian ships, including Sovcomflot’s fleet.

Read all the latest news, breaking news, watch top videos and watch Live TV right here.

,

- Advertisement -
RELATED ARTICLES
- Advertisment -
- Advertisment -

Most Popular

- Advertisment -