Russian Oil Tanker Reverses Course in Baltic Sea Following US Sanctions: Impact on India-Russia Oil Trade

An India-bound tanker carrying Russian crude has reversed course and is currently idling in the Baltic Sea, suggesting potential disruptions in oil trade between Russia and India following the United States' tightened sanctions against Moscow.

The vessel named Furia was traveling westward through the strait between Denmark and Germany when it abruptly changed direction on Tuesday, proceeding a short distance before significantly reducing speed, according to ship-tracking data. Kpler reports that the Aframax tanker is transporting cargo sold by Russian state oil company Rosneft PJSC.

This reversal in the Fehmarn Belt comes one week after the US imposed sanctions on state-owned Rosneft and Russian oil giant Lukoil PJSC. The US Treasury Department has mandated that all transactions involving these companies must be concluded by November 21.

The sanctioning of Russia's largest oil producers threatens India's access to relatively inexpensive crude supplies. Senior executives at Indian refineries have informed Bloomberg that Russian oil imports are expected to decrease substantially as a result of these measures.

According to tracking platforms Kpler and Vortexa, the Furia loaded approximately 730,000 barrels of Urals crude from Russia's Baltic port of Primorsk on October 20. The tanker initially listed Sikka - a port in Gujarat, India, used by private refiner Reliance Industries Ltd. and state-backed Bharat Petroleum Corp. Ltd. - as its destination, with an expected mid-November arrival.

Subsequently, the vessel updated its schedule to show Egypt's Port Said as its destination by mid-November. Tankers traveling through the Suez Canal, the shortest route between western Russian ports and India, sometimes indicate Port Said as a temporary destination before updating to their final destination after canal passage.

Reliance, which maintains a long-term contract for Urals crude from Rosneft, has affirmed its commitment to sanctions compliance and has reportedly been purchasing Middle Eastern crude following the latest US trade restrictions. Indian state refiners have also grown cautious about acquiring shipments from US-sanctioned Russian producers.

Indian refiners typically purchase crude on a delivered basis, taking ownership only when cargoes arrive at destination ports. Reliance and BPCL did not immediately respond to comment requests.

The Furia has already been sanctioned by both the European Union and the United Kingdom. Harbor Harmony Shipmanagement, the Azerbaijan-based safety-compliance manager listed on maritime database Equasis, did not immediately respond to comment requests. No contact information was available for the tanker's Seychelles-registered owner, Whispering Willow Corp.

Several European nations, including Denmark, have intensified vessel inspections to prevent Russian crude shipments from passing through their waters. Denmark announced this month it would target older vessels, which are commonly utilized by Russia's "shadow fleet" engaged in illicit trade. At approximately 23 years old, the Furia exceeds the typical 18-year age limit for oil tankers.