Russia expands Arctic oil shipments to Asia as traditional routes face disruption

Russia is increasing oil and liquefied natural gas shipments to Asia through the Northern Sea Route as conflict and disruption constrain established energy supply corridors, OilPrice reports. The outlet says the US-Israeli war on Iran and interruptions in the straits of Hormuz and Bab al-Mandab have encouraged the rerouting of Russian crude and fuel towards Asian buyers.

Citing Reuters, OilPrice reports that Russian oil exports along the Arctic corridor reached 20 million barrels during the July-to-mid-October navigation window in 2026, nearly 50% above the previous season’s 13 million barrels. Traders cited in the report expect another 5 million to 10 million barrels to move before the navigation season ends. The window coincides with the annual minimum in Arctic sea ice.

At 13,947 kilometres, the Northern Sea Route is substantially shorter than the 20,921-kilometre passage through Suez. OilPrice says it can reduce journeys to markets including China and India by up to two weeks, but remains more expensive and dangerous. Disruptions affecting Suez, Hormuz and the Black Sea have nevertheless increased its appeal. The report also describes the Arctic passage as a way for Russian exporters to avoid Western inspections, vessel detentions and port restrictions.

Record tanker freight rates are meanwhile reshaping Asian purchasing and transport arrangements, according to OilPrice. Supertanker delays and bottlenecks, including ship-to-ship transfers outside Hormuz, have prompted buyers to make greater use of smaller vessels and long-term charters. Northern Russian projects, including Rosneft’s Vostok Oil and expanded Arctic LNG operations, are also supplying larger volumes directly to Asian markets, the outlet says.

The Arctic expansion sits alongside established Russian supply channels. China receives just under 1 million barrels a day of Russian crude through overland infrastructure, while eastern Pacific ports have supplied up to 90% of its seaborne Russian purchases in recent months, OilPrice reports. India depends on tankers carrying crude to refining centres including Jamnagar, Vadinar and Paradip. Citing Reuters, the outlet says Gazprom Neft plans to raise its Northern Sea Route shipments by 35% against 2025. President Vladimir Putin has also reportedly outlined an expectation that annual cargo turnover on the route will double to 70 million tonnes by 2030.