LR removes ships of IR Class to transport Russian oil

Lloyd’s Register (LR) has told India’s Ship Management company, which has recently emerged as a major carrier of Russia’s oil since Moscow invaded Ukraine, that it will withdraw certification of 21 of its vessels by 3 June.

It is the most recent setback for the Indian shipping company, which was also forced to find new flags for 36 of its vessels after they were deflagged by the St. Kitts & Nevis International Ship Registry.

Lloyd’s Register is dedicated to enabling compliance with sanctions regulations on trading Russia’s oil, it is reported.

Classification societies like Lloyd’s Register in London extend services, including seaworthiness checks, a vital certification for securing entry to ports and insurance.

Lloyd’s Register said, however, that 11 vessels of the Indian shipping firm it had been declassifying were certified by the Indian Register of Shipping (better known as IRClass).

The American Club, a major US insurer, also informed that it no longer offered cover for the Indian shipping company’s vessels. In contrast, the Russian insurer dubbed Ingosstrakh said it wouldn’t be collaborating with the Indian shipping firm in the future.

Neither Lloyd’s Register, the insurers, nor the flag registry spelt out why they’ve dropped business with the shipping firm in question.

In response to Russia’s war in Ukraine, Western powers have imposed a price cap on Russia’s crude of $60 per barrel.

While non-EU countries can smoothly import seaborne Russia’s crude, Western insurers, shipowners, and insurers are restricted from handling these types of cargoes unless those are sold at or below that rate.

Last month, spot rates for Russian crude oil rose above $60 per barrel, and some ship insurance executives mentioned that they were scared about falling foul of the rules and regulations as they couldn’t track the cargo values independently.