Freight rates for shipping Urals crude from Russia’s western ports to India rose sharply in October, driven by strong export volumes and mounting sanctions pressure, industry sources told Reuters.
US President Donald Trump on Wednesday imposed further sanctions on Russia’s two largest oil producers, Lukoil and Rosneft.
On the same day, the European Union approved its 19th package of sanctions against Moscow. The bloc added 117 vessels — mostly tankers — to its list of shadow fleet ships linked to Russia, bringing the total to 558.
Crude oil loadings from Russia’s western ports of Primorsk, Ust-Luga and Novorossiisk remained elevated in October at around 2.3 million barrels per day (bpd), slightly below a record high of 2.5 million bpd fetched in September, driven by volumes freed up due to unplanned refinery maintenance.
Freight costs for transporting Urals from the Baltic ports of Primorsk and Ust-Luga to India for November loading now exceed $8 million for Aframax tankers, up from about $7 million per one-way voyage at the start of the month.
Offer prices for some individual vessels have approached $10 million, one trader said, noting that no fixtures have yet been confirmed at those levels.
Reuters sources said that Urals shipments from Russian ports are now largely handled by tankers from the shadow fleet, while Greek shipowners scale back their presence in the market.
“The number of Greek shipowners active in the market has dropped to a minimum,” one source said.
Since the start of 2025, the United States has rolled out a new wave of sanctions targeting Russia’s oil sector — among the toughest yet — hitting major exporters, insurers, traders and shipping firms, and triggering a sharp rise in freight rates.
(Reporting by Reuters; Editing by Louise Heavens)
