Arctic Oil Crisis: U.S. Sanctions Strain Russia's Supply Chain

Russia's Arctic oil sector, crucial for its exports, is heavily impacted by new U.S. sanctions targeting its tankers and storage depots. The sanctions affect key Russian producers and disrupt the flow of crude to Asian buyers, risking unsold storage and potentially reduced production.

Russia's expansive Arctic oil operations are shaken by stringent U.S. sanctions placed on tankers and storage facilities, disrupting the flow of crude oil to Asian markets, according to logistical sources.

These sanctions, the harshest yet on Russia's oil sector, affect major producers like Gazprom Neft and Surgutneftegas, and 183 vessels crucial for transporting oil, causing significant disruption across all Arctic oil grades.

Without quick replacement options for the sanctioned vessels, Russia faces unsold oil accumulation and imminent production cuts, as these specialized tankers are uniquely built for Arctic conditions and aren't readily available elsewhere.

(With inputs from agencies.)