Amid the oil and gas crisis sparked by the blockade of the Strait of Hormuz, India has made a significant bet on Russian oil imports.
Published: April 21, 2026 10:29 AM IST
Amid the oil and gas crisis sparked by the conflict between the US and Iran and the blockade of the Strait of Hormuz, India has made a major strategic move. The Indian government has increased the number of Russian companies offering marine insurance to ensure uninterrupted Russian oil supplies, potentially eliminating significant oil import constraints for years to come.
According to a decision by the Directorate General of Shipping (DGS), 11 Russian insurance companies have now been approved to cover ships calling at Indian ports, up from the previous eight. These companies will provide Protection and Indemnity (P&I) cover, which is crucial for international maritime trade.
India has removed the biggest hurdle
In fact, due to Western sanctions on Russia, major European insurance companies had reduced coverage for Russian oil ships. India’s biggest challenge was to develop alternative insurance arrangements. Now, by approving Russian companies, India has found a significant solution to this problem.
Major companies like Gazprom Insurance and Rosgosstrakh have been granted permission to provide insurance services until February 2027, while some like VSK, Sogaz, and AlfaStrakhovanie have received extended approval until 2030. This indicates that India has worked on long-term solutions, not just immediate ones.
In addition, the registration of companies such as Soglasie, Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance has been extended. India has also expanded the scope of non-Western options by allowing the Dubai-based Islamic Protection and Indemnity Club to provide services until February 2027.
Hormuz tensions under control
This decision comes at a time when the blockade of the Strait of Hormuz has raised concerns about oil supplies worldwide. A significant portion of the world’s oil passes through this route, and any disruption directly impacts major importing countries like India.
India is the world’s third-largest oil importer. In recent years, India has significantly increased its imports of cheap Russian oil. Ensuring the availability of insurance coverage was crucial, as no ship can operate internationally without insurance.
Experts believe that India’s move will act as a “safety net” amid global instability. This will not only ensure the continued supply of Russian oil, but will also allow India to meet its energy needs without interruption. Overall, amid the Hormuz crisis and Western pressure, India has found a way to end a major oil supply dispute by 2030.
