A tanker with Russian oil, bound for India, turned around and is currently standing in the Baltic Sea — this may indicate possible disruptions in oil trade between the two countries after the US tightened sanctions against Moscow. This is reported by Bloomberg, writes UNN.
Details
It is noted that the tanker Furia was moving west through the strait between Denmark and Germany when it turned around on Tuesday and, after a short movement, sharply reduced its speed, according to ship tracking system data. The Aframax carries cargo sold by Rosneft PJSC, analytical company Kpler reported.
The vessel's turnaround in the Fehmarn Belt strait occurred a week after the US imposed sanctions against the state-owned company Rosneft and another Russian oil giant, Lukoil. The US Treasury Department stated that all transactions with these companies must be completed by November 21.
The inclusion of the largest Russian producers in the sanctions list threatens to cut off a relatively cheap source of oil for Indian refiners. Senior executives of Indian companies told Bloomberg that Russian oil supplies will significantly decrease due to new restrictions
According to data from Kpler and Vortexa platforms, on October 20, the Furia tanker loaded about 730,000 barrels of Urals crude oil in the Russian port of Primorsk. Initially, the vessel indicated the port of Sikka in the Indian state of Gujarat as its destination — where oil is supplied by the private company Reliance Industries Ltd. and the state-owned Bharat Petroleum Corp. Ltd., with an estimated arrival date in mid-November.
Subsequently, the route was changed — Port Said (Egypt) is indicated as the arrival point in the middle of next month. Vessels passing through the Suez Canal — the shortest route between Russia's western ports and India — often indicate Port Said as an intermediate point before specifying the final destination after passing through the canal.
Reliance, which has a long-term contract to purchase Urals oil from Rosneft, stated that it adheres to sanctions and has already begun purchasing oil from the Middle East after the introduction of new US restrictions. State-owned Indian refiners have also become more cautious in purchasing cargo from sanctioned Russian companies.
Addition
Typically, Indian refineries purchase oil on a delivered basis, meaning ownership transfers only upon arrival of the cargo at the destination port. Reliance and BPCL have not yet commented on the situation.
Furia is already under EU and UK sanctions. The safety compliance manager — Azerbaijani company Harbor Harmony Shipmanagement (according to the Equasis maritime database) — did not respond to a request for comment. Contact details for the vessel's owner, Whispering Willow Corp., registered in Seychelles, are unavailable.
Some European countries, including Denmark, have stepped up inspections of tankers to stop the transportation of Russian oil through their waters. Denmark said this month that it would focus on older vessels, often used by Russia in the so-called "shadow fleet" engaged in illegal trade. The Furia tanker, which turns 23 this year, exceeds the usual operational limit for oil tankers — about 18 years.