Gatik Ship Management has turn out to be a significant provider of Russian oil for the reason that Ukraine battle. (Representational)

London/New Delhi:

Lloyd’s Register has advised India’s Gatik Ship Management, which has turn out to be a significant provider of Russian oil for the reason that Ukraine battle, that it’s going to withdraw certification of 21 of its vessels by June 3, the maritime providers firm advised Reuters.

It is the newest setback for Gatik, which was additionally been compelled to seek out new flags for 36 of its ships after they have been deflagged by the St. Kitts & Nevis International Ship Registry.

“Lloyd’s Register is committed to facilitating compliance with sanctions regulations on the trading of Russian oil,” it stated in an e mail to Reuters. “Where supported by evidence, we withdraw class and services from any vessels found by the relevant authorities to be breaching international sanctions.”

Classification societies resembling Lloyd’s Register in London present providers together with seaworthiness checks, certification that’s important for securing insurance coverage and entry to ports.

Lloyd’s Register stated, nonetheless, that 11 of the Gatik vessels it was declassifying have been additionally licensed by the Indian Register of Shipping (IRClass).

Gatik, which is predicated in Mumbai in keeping with transport databases, didn’t reply to emailed requests for remark.

A significant US insurer, the American Club, additionally advised Reuters it was not offering cowl for Gatik ships, whereas Russian insurer Ingosstrakh stated it will not work with Gatik in future.

Neither the insurers, Lloyd’s Register nor the flag registry spelled out precisely why they’ve dropped enterprise with Gatik.

Disruption and limits

In response to Russia’s invasion of Ukraine, Western powers imposed a value cap on Russian crude of $60 a barrel.

While non-EU nations can import seaborne Russian crude, Western shipowners and insurers are prohibited from dealing with such cargoes except they’re offered at or beneath that value.

Last month, spot costs for Russian crude rose above $60 a barrel and a few ship insurance coverage executives stated they have been nervous of falling foul of the foundations as they have been unable to independently observe the worth of cargoes.

India has shortly turn out to be the largest purchaser of seaborne Russian crude.

Western efforts to curtail the quantity of income Russia earns from its power assets are having a disruptive influence, as are Western sanctions on oil exports from different nations resembling Iran and Venezuela.

But the opacity and restricted oversight of the transport sector means many vessels with cargoes from nations focused by sanctions proceed to sail by discovering new flags and non-Western registries or insurers, elevating issues about security and legal responsibility.

Every ship requires paperwork together with a flag registry.

Ships usually have safety and indemnity (P&I) insurance coverage which covers legal responsibility claims together with environmental harm and damage. Separate hull and equipment insurance policies cowl vessels in opposition to bodily harm.

While Lloyd’s Register is dropping classification for 21 Gatik ships, at the very least 28 have been listed as licensed by the Indian Register of Shipping, in keeping with the IRClass web site.

IRClass, which is recognised globally, didn’t reply to requests for remark.

Insurance Lost

Gatik emerged this 12 months as a number one provider of Russian oil to India utilizing a fleet of tankers that has numbered greater than 40, transport information exhibits.

American Club, one of many world’s prime 12 P&I insurers which mixed present cowl for about 90% of the world’s ocean going tonnage, stated it beforehand lined most Gatik ships however as of early April was not masking them, declining to say why.

Ingosstrakh, a big Russian insurer energetic in ship protection however not a part of the highest 12, advised Reuters this month that its insurance coverage cowl for Gatik’s Prometheus tanker expired in April and had not been renewed.

Ingosstrakh stated it “had to decline certain requests for insurance it received from Gatik due to the risks identified as part of our adverse media screening procedure”, citing adverse media protection with out being extra particular.

“We can also confirm that we do not plan to work with Gatik in the future,” the privately owned Russian insurer stated in response to queries from Reuters.

Reuters was unable to establish whether or not any Gatik vessels have been at present working with out important paperwork.

India imported 2.76 million tonnes of Russian oil in vessels managed by Gatik in the course of the first 4 months of 2023, or 10% of its whole Russian imports, in keeping with tanker arrival information and Reuters calculations.

According to Refinitiv information, about 1.36 million tonnes of Russian crude was earmarked for arrival in India in May and June on tankers linked to Gatik, though these numbers have been preliminary.

In April, the St. Kitts & Nevis International Ship Registry advised Reuters it was eradicating its flag from 36 Gatik vessels.

“It is the long-standing policy of the Registry that when we are alerted to breaches of our high standards by vessels flying our flag, we always investigate and take action accordingly,” the registry stated, declining to supply additional particulars.

According to information from maritime platform Lloyd’s List Intelligence, Gatik has flagged 15 ships to Gabon, up from 9 at first of April earlier than St. Kitts & Nevis began eradicating its flag from the corporate’s vessels.

Gabon’s flag registry didn’t reply to requests for remark.