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U.S. Sanctions Take Effect, Stranding 48 Million Barrels of Russian Oil at Sea

Secondary-sanctions risk is forcing Asian buyers to pause purchases.

Overview

  • New U.S. measures blacklisting Rosneft and Lukoil took effect Friday, leaving roughly 48 million barrels on about 50 tankers loaded with Urals and ESPO grades seeking alternatives or facing delays.
  • Kpler data reported by Bloomberg show cargoes spread from the Baltic and Black Sea to the Pacific, with some ports and refiners refusing to unload after the wind-down deadline.
  • India, a key buyer, has halted or canceled December and January lifts from the sanctioned firms, with some India-bound shipments unable to discharge as refiners pivot to Middle Eastern and U.S. supplies.
  • A scramble for replacement barrels has driven freight rates on Middle East–India routes to near five-year highs, lifting import costs and threatening refinery margins in India.
  • Russian seaborne exports remain near 3.4 million barrels per day, but an increasing share is stuck offshore, and analysts expect rerouting, ship-to-ship transfers, floating storage, and potential production cuts if storage fills.