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aligned with Western policy towards Russia might also accept Russian or other insurance.
Indian has already blown a hole in this scheme after an Indian insurance company agreed to offer Russian tankers safety certification to a Dubai-registered subsidiary of Russia’s biggest ship operator Sovcomflot on June 23. That will allow Russia to export oil to Indian even if the Western insurance sanctions are put into effect.
Moreover, certification by the Indian Register of Shipping (IRClass) could well be accepted by Russia’s other nonaligned customers in the developing world, most of which have refused to join the western sanctions. bne IntelliNews reported, the enthusiasm for the West’s sanctions outside of the G7 countries is only lukewarm.
Data compiled from the IRClass website shows that it has certified more than 80 ships managed by SCF Management Services (Dubai) Ltd, a Dubai-based entity listed as a subsidiary on Sovcomflot's website, Reuters reports.
India's ship certifier is one of 11 members of the International Association of Classification Societies (IACS), top-tier certifiers that account for more than 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 The Russia Maritime Register of Shipping was also part of the group until March, when its membership was withdrawn following a vote by 75% of IACS' members. However, only four of the 11 members (UK, Norway, France, and the US) have withdrawn their services from Russian ships due to sanctions.
An IACS spokesman told Reuters that IRClass' actions were, “not a matter for discussion by the association,” and that members of the association were free to make their own commercial decisions.
With the Indian IRClass certification Russian ships have then turned to their domestic insurance companies for cover. Sovcomflot's chief executive told reporters earlier this month that the group had insured all its cargo ships with Russian insurers and the cover met international rules. Reuters reported that the Russian state-controlled Russian National Reinsurance Company (RNRC) has become the main reinsurer of Russian ships, including Sovcomflot's fleet.
RNRC is under the control of the Central Bank of Russia (CBR). The CBR raised RNRC's capitalisation to RUB300bn ($6bn) from RUB71bn and hiked its guaranteed capital to RUB750bn so the firm had adequate resources to provide reinsurance.
Indian authorities have also accredited the privately owned Russian insurance giant Ingosstrakh as an insurance company for shipping oil, which means vessels the company insures can enter Indian ports. Ingosstrakh was formerly owned by Czech investment holding PPF and Italian insurance giant Generali, which “froze” its 38.5% stake in the company in March, but has no plans to sell it, according
58 RUSSIA Country Report October 2020 www.intellinews.com