Transportation costs for Russian oil are rising

The cost of shipping Russian crude before EU sanctions came into effect is rising rapidly. The cost of shipping Russian crude before EU sanctions on Russian oil is rising rapidly, which is why tanker owners have also started to avoid trading Russian crude. Owners who are willing to load Russian crude are demanding more for the risk. Rates from the Baltic Sea to India are being discussed at around $15 million for shipments after Dec. 5, when new EU restrictions come into effect, shipbrokers said. The rise in costs reflects the challenges faced by Russian crude suppliers, including some of the world’s largest tanker owners in Greece, ahead of a deadline for the EU to stop expanding shipping and other services for oil produced by the OPEC+ nation. Fewer ships and the need to divert Russian oil from traditional buyers in Europe to new buyers in Asia and the Middle East are also contributing to the higher rates.