News poured out from the officials regarding the Russian shipping group, Sovcomflot, whose ships belonging to their subsidiary are shepherded under the wings of India who seem to have taken responsibility for their safety.
There’s a last-stage link issued by the IRClass—the Indian Register of Shipping, which gave the certification that is required to keep the state-based Sovcomflot’s fleet on sea whenever on duty. This pass from one of the global top classification associations would mean that Russia officially had the approval it needed to distribute its crude oil to international markets (or at least, to places where it is still purchased).
Above 80 ships under Dubai’s powerhouse, the SCF Management Services was given the green light from the IRClass, according to the data shared. It is listed as a subsidiary directly under Sovcomflort’s administration on the official website.
A representative from Indian authorities had offered to comment, claiming that it is thanks to the Dubai franchise that a majority of Sovcomflot’s fleet had been shifted to be used as seen fit in IRClass.
For bagging insurance and having the pass to roam to ports, the ships must be “healthy”—as in be in good shape to survive weathered sea turmoil and carry the goods safely. The classification experts allowed the ships to do so, after recognizing them to be sturdy enough.
Russia being the one who initiated the war on Ukraine has already put it in a tight spot, but its behavior warranted strong sanctions on the country as a whole even if Moscow alone can be held responsible. The country’s crude oil sector suffered the most, to the point where it had to reach out to Western buyers and receive aid from domestic transporters, lenders, and insurers to overlook its exports to the overseas market.
While most countries remain wary of the Russian sanctions, it isn’t such a case for India which made its stance clear by aiding in the Russian fuel-producing sector. It is suspected the bold move is because of their long-term diplomatic relationship.
However, it isn’t such a case for the U.S. and other allied countries. Most of the Western oil importers refuse to take part in the market in Moscow. This led to the country’s oil rates facing off against other grades which were comparatively better.
Russian transactions amounted to around a ballpark estimate of 16.5% of the total Indian oil imports last month. Most definitely a rise from the 1% annual average in 2021. These blossoming contractual and mutually beneficial trades stemmed from the post-war aftermath. Indian refineries seldom bought Russian crude since the freight rates used to be near exorbitant, but this gap is an opportune time to swipe inexpensive oil from the country.
Meanwhile, it is known that the UK and allied European Union had subjected Sovcomflot to a bunch of strict sanctions as deemed necessary.
Washington however, had refrained from taking drastic measures since their relationship with Russian trades has always been minimal and almost faint; the district has simply chosen to ban any potential financial pursuits with Moscow’s markets. When asked for a spokesperson from Sovcomflot to shed some more light on the matter, they refused to comment.
Regardless, the company’s Chief Executive had a press conference where he unveiled that all of the cargo ships under its wings were insured by the Russians responsible and the certification fell within the lines of global standards & requirements.
Their fleet, along with many Russian ships were reinsured by the state-owned RNRC—the Russian National Reinsurance Company which is the largest and long-standing reinsurance company based within the country. The Central Bank of Russia is a full shareholder of RNRC.
