Russia Offers India To Build Large-Capacity Ships & Oil Tankers

Russia has offered support to India for building or leasing large capacity ships & big oil tankers so that the country can dodge the EU price cap rules.

Russia has offered to support India build and lease large-capacity ships, which might allow Indian exporters to cease their costly reliance on international shipping lines. 

The Russian offer comes in response to India’s decision not to accept the price ceiling on Russian oil that the G7 and their allies imposed on December 5th.

The price restriction on Russian oil set on December 5 by the G7 countries and their supporters was welcomed by the deputy prime minister of Russia, Alexander Novak, according to a statement from the Russian foreign ministry.

The Federation of Indian Export Organizations has pushed the government to establish a reputable Indian shipping line, arguing that Indian exporters have been heavily dependent on international shipping lines. 

According to the report, India brought back transportation services worth more than $80 billion in 2021.

The government is developing a production-linked incentive programme for creating shipping-grade containers.

Previously India’s largest shipping business, disinvestment-bound Shipping Corporation of India Ltd, recorded a 48.81% decrease in net profit to 124 cr in the quarter ended in September.

According to the Russian statement, Novak offered India cooperation on renting and building large-capacity ships to avoid dependence on the EU and UK’s restrictions on insurance coverage and tanker chartering.

India and Russia discussed extending their collaboration on trade in energy supplies, such as oil, petroleum products, liquefied natural gas, coal, and fertilizer, at a meeting, noting the record growth in bilateral commerce.

Imports from Russia, on the other hand, have increased fivefold in the first 5 months of the fiscal year to $17.23 billion. 

As per energy cargo tracker Vortexa, Russia continued to be India’s biggest oil supplier in November for the second consecutive month.