The oil tanker Furia, carrying 730,000 barrels of Urals crude from Russia’s Primorsk port, has reversed course in the Baltic Sea, abandoning its intended destination of Sikka port in Gujarat, India. According to ship-tracking data, the vessel altered its route after passing the Fehmarn Belt between Denmark and Germany, subsequently updating its destination to Port Said, Egypt.

The reversal follows new U.S. sanctions imposed on October 17 targeting Rosneft, Lukoil, and more than 50 entities within Russia’s energy sector. These measures mandate the termination of all related transactions by November 21, creating significant compliance challenges for shipping, insurance, and financial institutions involved in Russian oil trade.

Indian refiners, including Reliance Industries, Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, rely heavily on discounted Russian crude, which constitutes approximately 40% of the country’s total imports—a sharp increase from less than 2% before 2022. The sanctions threaten to disrupt this supply chain, potentially reducing Russian oil inflows to India to near-zero levels in the near term.

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Industry sources report that at least three additional cargoes destined for India have been delayed or rerouted in recent days. One Very Large Crude Carrier (VLCC) loaded at Novorossiysk remains offshore near Malta awaiting instructions, while a Suezmax tanker has changed its status to “For Orders,” indicating uncertainty in final delivery.

The incident highlights growing risks associated with Russia’s “shadow fleet”—vessels often operating without Western insurance and disabling tracking systems to evade sanctions. Enhanced monitoring by the European Union and G7 nations now requires proof of compliant insurance for entry into their waters, increasing the likelihood of vessel detentions.

For India, the disruption presents both economic and strategic challenges. Alternative supplies from the Middle East, Africa, or Latin America are expected to cost $20–$25 per barrel more than recent Russian discounts, potentially raising refining costs and exerting upward pressure on domestic fuel prices. Refiners are reviewing existing contracts and accelerating efforts to diversify procurement sources.

The episode underscores a broader reconfiguration of global oil trade flows amid escalating geopolitical tensions and sanctions enforcement. Indian authorities and energy companies are closely monitoring developments as they seek clarity on compliance requirements and supply continuity.

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