Russia's crude oil exports to Asia via the Northern Sea Route surge, with China emerging as the biggest beneficiary.

Polar "Silk Road": Media Reports: Russia's Oil Exports to Asia via Arctic Route Surge, China the Biggest Beneficiary

Reuters cited three trade sources and shipping data from the London Stock Exchange Group (LSEG), reporting that the speed of Russian crude oil shipments via the Arctic route this year has accelerated compared to the same period last year. To date, seven shipments totaling approximately 6 million barrels of crude oil are en route to Asia.

The Arctic Route traverses Arctic waters, connecting western Russian ports with Asian markets. The typical navigation season runs from July 1 to October 1 each year. The report notes that Russia is actively utilizing this route to deliver goods to China and other parts of Asia, bypassing maritime zones subject to scrutiny, detention, or other restrictions imposed by European authorities due to sanctions related to the Russia-Ukraine conflict.

Data from Rosatom, Russia’s state nuclear energy company, indicates that these 6 million barrels of crude oil amount to about 850,000 metric tons—nearly half of last year’s total volume transported via the Arctic Route during the entire navigation season (approximately 13 million barrels).

Traders say that shipping crude oil from Russia to China via the Arctic Route saves roughly two weeks compared to the traditional Suez Canal route. If ongoing conflicts in Iran continue to disrupt Middle Eastern supply chains, China—the primary destination for Russian crude oil via the Arctic Route—may further increase its purchases.

A trader involved in supplying the Arctic Route noted that this year’s sea ice conditions have been relatively mild, facilitating navigation. Additionally, logistical issues in the Strait of Hormuz and the Black Sea region have driven increased Russian oil shipments via the Arctic to China. Another trader expects that due to economic and geopolitical factors, crude oil transport volumes via the Arctic Route this year will exceed those projected for 2025.

Traders also pointed out that during the navigation season, China typically benefits the most from the Arctic Route because its ports are closer to Russia’s Far East export terminals than those of other major Asian buyers.

Original article: toutiao.com/article/1873292529452035/

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