Between July 21 and July 27, the cost of crude oil transportation rose across all routes due to a reduction in the available fleet not subject to the restrictions outlined in the European Union’s 18th sanctions package, according to the Russian Price Index Center.
Analysts noted that the route most affected was Turkey’s, seeing a 30% increase in costs, as Turkish importers increased monitoring compliance with the latest EU-imposed restrictions.
The transportation cost from the Black Sea to India increased by 10%, while the Baltic Sea route saw an 8% rise, and the Kozmino (a port on the Sea of Japan) to China route increased by 11%.
Roman Sokolov, director of the Price Index Center, indicated that the increase in prices could also be attributed to longer refueling times for ships due to new Russian regulations. These require foreign-flagged ships to coordinate with the Federal Security Service.
However, experts further highlight that prices are expected to stabilize soon, following the market’s adaptation to the new restrictions, which have already caused a 25% drop in ship departures from Russia compared to the previous year.
In mid-July, the EU approved its 18th sanctions package against Russia, which includes reducing the maximum price of exported Russian oil to $47.60 per barrel and adding 105 ships from the so-called Russian ‘phantom fleet’ to a blacklist. These ships are banned from entering ports and receiving services, among other restrictions, aiming to cut revenue funding the war in Ukraine.
