**US Sanctions Strain Russia’s Oil Exports**
Russia is facing a major oil transportation crisis due to recent US sanctions. The US Treasury sanctioned 161 oil tankers involved in transporting Russian crude on January 10.
**Shipping Costs Soar**
These restrictions have caused a sharp increase in shipping costs for Russian oil exports. Data from Argus Media shows that freight rates have surged by nearly 50% since the measures took effect. The difference between the price of Russian oil at export and its delivered price in Asia has also spiked.
**Sanctioned Vessels Pile Up**
The number of sanctioned vessels has now reached 265, with US blacklisting proving to be the most disruptive. Of the 435 ships that transported Russian crude last year, 112 – or 26% – are now under Washington’s sanctions. When EU and UK-sanctioned vessels are included, the figure rises to 37%.
**Logistical Hurdle for Kremlin**
The affected vessels were responsible for 57% of Russia’s total seaborne crude exports last year. This presents a significant logistical hurdle for the Kremlin as it struggles to secure alternative shipping options.
**Consequences for Russian Oil Exports**
Freight costs have already surged, with the expense of shipping a barrel of Russian crude from the Black Sea to India now at $10, while transport from the Baltic costs as much as $13 per barrel. If the recent shipping bottlenecks continue to expand, the sanctions could deal a severe blow to Russia’s energy trade, exacerbating its economic challenges.
Read More @ kyivindependent.com
