Russia ships 20 million barrels of oil to Asia via Arctic route amid shipping disruptions: Report
Russia has shipped nearly 20 million barrels of oil to Asia through the Northern Sea Route (NSR) since the start of the navigation season in July, almost 50 per cent more than during the corresponding period last year, as disruptions to traditional shipping corridors make the Arctic route more attractive, traders said and data showed.The volume shipped through the route by mid-October has already exceeded the 13 million barrels exported during the entire 2025 navigation season. Shipments could rise by another 5-10 million barrels before the current navigation period ends, according to preliminary estimates by traders, cited by Reuters.The NSR connects Russia’s western ports with Asian markets through Arctic waters. Although the route is more hazardous and expensive to navigate, requiring icebreaker assistance, disruptions involving the Suez Canal, the Strait of Hormuz and the Black Sea have improved its appeal this year.Rising tanker freight rates, fuelled by the wars involving Iran and Ukraine, have added to the pressure on shipping costs. With conventional routes facing security risks and supply disruptions, Asian refiners have been looking for alternative sources of crude oil, making the higher cost of Arctic shipping more competitive against longer or riskier alternatives, traders said.For Moscow, the route also offers a strategic alternative to European waters, where tankers carrying Russian oil have faced repeated seizures this year.The expansion of Arctic shipments comes as Russian crude supplies to India face tighter availability and growing competition from China.Meanwhile, India remained the world’s largest destination for Russian crude oil in September, although imports fell nearly 29 per cent from July levels as Chinese refiners stepped up purchases and tightened the availability of Russian supplies, according to ship-tracking data from Kpler.The report noted that Arctic shipments offer a more direct and potentially economical route to northern China during the navigation season. This could intensify competition between Chinese and Indian refiners for Russian crude, particularly as shipping costs and tighter supplies reduce the price advantage India previously enjoyed.India has relied heavily on Russian crude since 2022, when Moscow redirected oil exports away from Europe. However, the changing economics of Russian oil have prompted Indian refiners to consider alternatives, including supplies from the Middle East and Latin America.Gazprom Neft plans to increase Arctic shipmentsGazprom Neft, one of Russia’s major oil producers, plans to increase shipments through the NSR by around 35% this year compared with 2025, its chief executive Alexander Dyukov told journalists in Moscow on Friday.The route is also being used to transport liquefied natural gas (LNG) and other goods to Asian markets. LNG shipments are expected to increase this year following the launch of deliveries from the Arctic LNG project.Russia is seeking to expand the route’s role in its trade with Asia. President Vladimir Putin said at an economic forum in Vladivostok in September that the country expects annual cargo turnover through the NSR to double to 70 million metric tonnes by the end of the decade.The increase in oil traffic is also being supported by Vostok Oil, Rosneft’s major oil project in northern Russia, which began operations last month and is already contributing to rising volumes along the route.
