LONDON/NEW DELHI:
Lloyds Register has told India’s Gatic Ship Management. Which has become a major carrier of Russian oil since the Ukraine war. To revoke the certification of 21 of its vessels by June 3. The maritime services company told Reuters.
It is the latest setback for Gatic, which was forced to find new flags for its 36 vessels. After they were deflagged by the St Kitts and Nevis International Ship Registry.
“Lloyds Register is committed to complying with the sanctions on Russian oil trading.” It said in an email to Reuters. “Where supported by evidence, we withdraw classes and services from any vessel found. By the relevant authorities to be in violation of international sanctions.”
Classification societies such as Lloyd’s Register in London provide services including. Seaworthiness testing, insurance and certification essential for port entry.
Lloyd’s Register said. But, that the 11 Gatic vessels it was declassifying were also certified. By the Indian Register of Shipping (IRClass).
Mumbai-based Gatic did not respond to emailed requests for comment. According to the shipping database.
A major US insurer, American Club, also told Reuters it. Was no longer providing cover for Gatic vessels. While Russian insurer Ingostrakh said it would not work with Gatic in the future.
Neither the insurer, nor Lloyd’s Register nor the Flag Registry spelled out. Exactly why they gave up business with Gatic.
disruptions and limits
In response to Russia’s aggression in Ukraine. Western powers pushed the price of Russian crude oil to $60 a barrel.
While non-EU countries can import seaborne Russian crude. Western shipowners and insurers are prohibited. From handling such cargoes unless they are sold at or below that price.
Last month, the spot price of Russian crude rose above $60 a barrel, and some. Ship insurance officials said they were nervous about the rule foul because. They were unable to track the price of cargoes.
India has become the largest buyer of seaborne Russian crude oil.
Western efforts to reduce the amount of revenue. Russia earns from its energy resources. Are having a disruptive effect. As are Western sanctions on oil exports from other countries such as Iran and Venezuela.
But the opacity and limited oversight of the shipping sector means many ships with cargo. From countries targeted by sanctions find new flags and non-Western registries or insurers. Raising concerns about safety and liability.
Every ship needs to document with a flag registry.
Ships usually have protection and indemnity (P&I) insurance that covers liability claims. Including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.
While Lloyd’s Register is dropping. Classification for 21 Gatic ships, at least 28 are listed. As certified by the Indian Shipping Register, according to the IRCclass website.
IRCclass, which is recognized worldwide, did not respond to requests for comment.
Insurance lost
Gatik has emerged as a leading carrier of Russian oil to India this year using a fleet of more than 40 tankers. Shipping data showed.
American Club, one of the world’s top 12 P&I insurers that provides cover for about 90% of the world’s ocean tonnage. Said it before covered most of the Gatic ships. But stopped covering them in early April, declining to say why.
Ingosstrakh, a large Russian insurer active in ship coverage but not part of the top 12. Told Reuters this month that its insurance cover for Gatik’s Prometheus. Tanker expired in April and was not renewed.
Ingosstrakh said “it has had to decline certain requests for insurance from Gatik due to. The risks identified as part of our adverse media screening process”, referring to. Negative media coverage without being more specific.
“We can confirm that we do not plan to work with Gatik in the future,” the owned. Russian insurer said in response to questions from Reuters.
Reuters could not confirm whether any Gatic vessels. Are currently operating without the required documents.
India imported 2.76 million tonnes of Russian oil in vessels operated by Gatik in. The first four months of 2023, or 10% of its total Russian imports, according. To tanker arrival data and Reuters calculations.
According to data from Refinitiv, about 1.36. Million tonnes of Russian crude was schedul. To arrive in India in May and June in tankers linked to Gatic, Althoughthese numbers. were preliminary.
In April, the St. Kitts and Nevis International Ship Registry told Reuters it was. Removing its flag from 36 Gatic vessels.
“It is the registry’s long-standing policy that when we are alert to violations of our. High standards by vessels flying our flag, we always investigate. And take action ,” the registry said, declining to elaborate.
According to data from maritime platform Lloyd’s List Intelligence. Gatic flagged 15 ships to. Gabon as early as April 9 before the St. Kitts and Nevis company began removing its flags from the ships.
Gabon’s flag registry did not respond to a request for comment.
