Russia to send first oil shipment to Brunei via Arctic passage

Russia will deliver oil to Brunei via the Northern Sea Route for the first time this September, expanding its export reach through the strategic Arctic passage, two sources familiar with the shipping data told Reuters.

Until now, NSR shipments have been limited to China due to its proximity to Russia’s Far East. Moscow has been actively promoting the route, which is shorter and less costly than moving crude through the Suez Canal, to other partners including India and the US.

The tanker Latur is currently en route to Muara in Brunei carrying Arctic heavy ARCO oil loaded in Murmansk and supplied by Gazprom Neft, one source said. The vessel is owned by Seychelles-based Gessi Marine, sanctioned by the US Treasury in January 2025, and sails under the Comoros flag.

Brunei's Energy Ministry and Gazprom Neft did not respond to requests for comment. Reuters could not reach Gessi Marine for comment.

Brunei has been importing small volumes of Russian crude since Western sanctions in 2022 pushed Moscow to seek new buyers. In 2023, Brunei imported $15.6 million worth of Russian oil, including its first Urals cargo to the Pulau Muara Besar refinery operated by Hengyi Industries.

The NSR, navigable in summer and autumn, links Russia’s western ports to Asia via the Arctic, cutting shipping time by up to 10 days compared to the Suez Canal. Last year, over 12 million barrels were shipped to China via the route.

Russia is expected to boost NSR shipments this year, though high costs and required approval from nuclear agency Rosatom remain hurdles. Around four million barrels of Russian oil are currently en route to China via the NSR, LSEG data shows.

Rosatom said it provides permits, icebreaker assistance, and safe navigation services, but did not disclose vessel details.

(Reporting by Reuters reporters in Moscow and Gleb Stolyarov in Tblisi; Additional reporting by Ain Bandial in Bandar Seri Begawan; Editing by Jan Harvey)