China, India Halt Russian Oil Imports Amid Soaring Tanker Freight Costs — Reuters
China and India have suspended purchases of Russian oil for March delivery due to a surge in freight costs for tankers unaffected by U.S. sanctions, Reuters reported, citing traders familiar with the matter.
According to the traders, the premium for Russian ESPO crude has risen by $3–5 per barrel compared to ICE Brent, while freight rates for Aframax tankers on routes to China have increased by "several million dollars."
On January 10, the United States imposed its "most significant sanctions" on Russia's energy sector. The measures targeted companies such as Gazprom Neft and Surgutneftegas, their subsidiaries, and over 180 vessels that Washington identified as part of Moscow's "shadow fleet" for transporting fuel. As a result, refineries in China and India are expected to boost imports from the Middle East, Africa, and the Americas, potentially driving up fuel and freight costs, Reuters noted. Several Chinese and Indian importers have reportedly refused to accept tankers affected by the sanctions.
In 2024, 36% of India’s oil imports and nearly one-fifth of China’s imports came from Russia. India’s Deputy Minister of Petroleum and Natural Gas, Pankaj Jain, stated that the U.S. had demanded Russian oil tankers be unloaded by February 27, with payments completed by March 12 under the new sanctions regime. Reuters added that vessels in China are encountering delays in offloading fuel.
Russia has deemed the Western sanctions illegal and has called for their repeal. Kremlin spokesperson Dmitry Peskov said halting traditional fuel supply routes was impossible. “If something is blocked in one place, an alternative route appears elsewhere," Peskov noted, emphasizing Moscow’s efforts to find ways to minimize the impact of U.S. restrictions.
In World
-
European powers, including Britain, France and Germany, said on Wednesday they had to be part of any future negotiations on the fate of Ukraine, underscoring that only a fair accord with security guarantees would ensure lasting peace.
-
The amount of Russian and Iranian oil held on ships has hit multi-month highs as harsher U.S. sanctions reduced the number of buyers, leaving fewer tankers available to deliver cargoes and driving up crude costs, trade sources and analysts said.
-
Russia's President Vladimir Putin held a phone call with Syria's interim leader Ahmed al-Sharaa, the Kremlin said on Wednesday, the first direct communication between the two since Sharaa's forces overthrew Moscow's ally Bashar al-Assad in December.
-
A senior official in Ukraine’s anti-terrorist centre has been arrested on suspicion of spying for Russia, say security chiefs.
Leave a review