Trade of Russian oil with China and India has halted due to new sanctions, - Reuters.

Trade of Russian oil with China and India has nearly stopped due to the rising cost of transportation after new U.S. sanctions were imposed.

Offers for Russian ESPO oil for March from the Pacific port of Kozmino have risen to a premium of $3-5 per barrel over the price of Brent oil for China. This was due to the increased cost of tanker freight on this route.

Indian company BPCL reported that it has not received offers for oil supplies for March.

The new U.S. sanctions, which were introduced on January 10, targeted tankers carrying about 42% of Russia's maritime oil exports. Tankers with Russian oil must unload by February 27, and payments for oil on sanction-targeted vessels must be made by March 12.

Tankers affected by sanctions in China are facing unloading delays, despite exceptions. Several vessels are still waiting to unload in various ports.

Russian oil accounts for 36% of India's imports and almost one-fifth of China's imports in 2024.

Trump develops sanctions strategy for the oil sector

Trump's team is developing a strategy for the oil sector that involves possible easing of sanctions for Russian oil producers in case of a peaceful settlement or tightening of sanctions pressure.

Trump's energy policy is aimed at restarting the leasing program for oil and gas extraction sites, as well as lifting the ban on drilling in offshore waters.

Saudi Arabia is ready to invest $600 billion in the U.S. over the four years of Trump's presidency, which may significantly impact the oil sector.

U.S. sanctions could significantly complicate energy resource exports from Russia, as tankers transporting more than one-fifth of Russia's maritime oil flows fell under restrictions.