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Business News/ News / World/  Lloyd's Register withdraw certification of Indian carrier importing Russian oil: Report
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Lloyd's Register withdraw certification of Indian carrier importing Russian oil: Report

Gatik Ship Management has become a major carrier of Russian oil since the Ukraine war

Representational Image: Lloyd's Register, a classification society based in London, offers various services (AP)Premium
Representational Image: Lloyd's Register, a classification society based in London, offers various services (AP)

In the latest setback for the Mumbai-based Gatik Ship Management, maritime services company Lloyd's Register said it will withdraw certification of 21 of its vessels by June 3. The move is seen as another set of efforts by the Western shipowners and insurers to curtail the amount of flow of Russian crude in the international markets.

Gatik Ship Management has become a major carrier of Russian oil in India since the Ukraine war.

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

Lloyd's Register, a classification society based in London, offers various services, one of which is conducting assessments to determine the seaworthiness of vessels. Additionally, they provide certification, which is crucial for obtaining insurance coverage and gaining access to ports.

The development came as Gatik is already looking for new flags for 36 of its ships after they were deflagged by the St. Kitts & Nevis International Ship Registry.

The American Club, a major US insurer also told Reuters that they are no longer providing cover for Gatik, and similarly, Russian insurer Ingosstrakh refused to work with Gatik in the future. Notably, no one is ascribing any specific reason for the termination of services.

Background

As a response to the Russian invasion of Ukraine, in a bid to limit the flow of revenue to Russia, Western nations imposed a price cap of $60 per barrel on Russian crude oil. India, which was already suffering due to the sanctions on Iran and Venezuela, decided to not accept the price cap and kept importing discounted Russian crude in huge quantities.

Although non-European Union (EU) countries have the ability to import Russian crude oil via sea routes, Western shipowners and insurers are restricted from transporting such shipments unless they are sold at or below a specified price.

In April, the spot prices for Russian crude oil exceeded $60 per barrel.

Despite Lloyd's Register's decision to revoke the classification status for 21 Gatik ships, it has been discovered that a minimum of 28 of these ships were officially certified by the Indian Register of Shipping, as indicated on the IRClass website.

(With inputs from Reuters)

 

 

 

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Published: 27 May 2023, 02:53 PM IST
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