Sign of oil trade disruption after Trump sanctions? Russian crude oil tanker headed for India takes a U-turn; now idling in Baltic Sea

Within days of the US President Donald Trump announcing sanctions on two major Russian oil firms, Rosneft and Lukoil, a crude oil tanker headed for India has now taken a U-turn. According to a Bloomberg report, the India-bound tanker carrying Russian crude has changed direction and is currently stationary in the Baltic Sea, indicating possible complications in crude oil trade between the two nations following stricter US sanctions against Russia.

Ship-tracking information revealed that the vessel Furia altered its course on Tuesday whilst traversing the strait between Denmark and Germany, proceeding briefly before significantly reducing speed. Bloomberg quoted Kpler data saying that the Aframax vessel contains cargo from Rosneft PJSC.



The ship's U-turn in the Fehmarn Belt came one week after the United States imposed sanctions on state-operated Rosneft and Russian petroleum company Lukoil PJSC. The Treasury Department has stipulated that all dealings with these firms must conclude by November 21.

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A crude oil tanker named Furia loaded approximately 730,000 barrels of Urals crude from Primorsk, a Russian Baltic port, on October 20, according to tracking data from Kpler and Vortexa platforms quoted in the report. Initially, the vessel indicated its destination as Sikka, a port in Gujarat, India, where Reliance Industries Ltd. and Bharat Petroleum Corp. Ltd. operate refineries, with planned arrival in mid-November.

Subsequently, the vessel updated its destination to Egypt's Port Said, with arrival scheduled for mid-November. Ships travelling between Russian western ports and India via the Suez Canal frequently list Port Said as their destination, often updating their final port of call after passing through the canal.

India to reduce Russian crude oil imports?

The sanctions against Russia's main oil producers could terminate a source of discounted crude for Indian refineries. In conversations with Bloomberg, senior officials at Indian refineries have indicated that Russian oil imports are likely to decline.

Reliance, which maintains a long-term Urals procurement agreement with Rosneft, has said it will adhere to sanctions and has been observed increasing its Middle Eastern crude purchases following recent US trade restrictions.

Additionally, state-owned refineries have adopted a more cautious approach towards purchasing oil from Russian suppliers under US sanctions.

Indian refineries typically purchase crude with delivery included, taking possession only upon cargo discharge at destination ports.

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The EU and UK have already imposed sanctions on Furia. Denmark and other European countries have intensified their vessel inspections to prevent Russian crude carriers from traversing their waters.

Danish authorities announced this month they would focus on examining older vessels, which Russia frequently employs in its unofficial fleet for unauthorised trading. At 23 years old this year, Furia exceeds the standard age limit of 18 years for oil-carrying vessels.