Russia offers India leasing and building of huge capacity ships – The Economic Times*

lipped from: https://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/russia-offers-india-leasing-and-building-of-huge-capacity-ships/articleshow/96180667.cms

Synopsis

The offer was extended during a meeting between Russian Deputy PM and former energy minister Alexander Novak and Indian envoy to Russia Pawan Kapoor. The offer was extended so that India would not have to rely on European insurance services and the charter of tankers, according to persons familiar with the matter.

Moscow has offered India “leasing and building large-capacity ships” as insurance on Russian oil amid G7 price cap on Russian energy purchases.

The offer was extended during a meeting between Russian Deputy PM and former energy minister Alexander Novak and Indian envoy to Russia Pawan Kapoor. The offer was extended so that India would not have to rely on European insurance services and the charter of tankers, according to persons familiar with the matter.

“In order not to depend on the ban on insurance services and tanker chartering in the European Union and Britain, the Deputy Prime Minister of Russia Alexander Novak has offered India cooperation on leasing and building large-capacity ships,” the Russian government said in a statement.

“In the first eight months of 2022, Russian oil exports to India grew to 16.35 million tonnes; in the summer, Russia ranked second in terms of oil shipments to India,” the statement said. The meeting between Novak and Kapoor was held last Friday.

Defending oil purchases from Russia, India’s External Affairs Minister S Jaishankar told parliament on December 7, “We do not ask our companies to buy Russian oil. We ask our companies to buy oil, what is the best option that they can get. Now it depends on what the market throws up… Again, please do understand, it’s not just that we buy oil from one country. We buy oil from multiple sources, but it is a sensible policy to go where we get the best deal in the interests of the Indian people and that is exactly what we are trying to do.”

The increase in India-Russian oil trade occurred with the revival of the Vladivostok-Chennai shipping route. Last year New Delhi and Moscow decided to focus on the area of civilian shipbuilding, which will facilitate enhancement of interaction and specialist training, investments in shipbuilding and repair, scientific research, development of intelligent transport and navigation systems, and international transport corridors. The civilian ships are also intended for oil trade. Mazagaon Dock Ltd and Zvezda Shipyard of Russia have signed an agreement for commercial shipping.

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