Sanctions and industrial actions restrict Russia’s fuel oil shipments to Asia

Russian Fuel Oil Shipments to Asia Continue to Decline

Russian exports of fuel oil to Asian markets are projected to fall for the third month in a row this January, as U.S. sanctions discourage buyers and Ukrainian strikes on Russian oil facilities disrupt supply routes.

Data from Kpler, referenced by Reuters, indicates that Russia has shipped approximately 246,000 barrels per day of fuel oil to Asia so far this month.

Industry analysts suggest that the ongoing reduction in Russian fuel oil exports, combined with decreased shipments from Venezuela due to U.S. restrictions, could tighten the Asian high-sulfur fuel oil (HSFO) market. Fuel oil serves as both a marine fuel and a refinery feedstock.

Sanctions imposed by the United States on companies like Rosneft and Lukoil have led to increased scrutiny of Russian oil cargoes, prompting many buyers to avoid potentially sanctioned supplies.

“With strict enforcement and the threat of penalties, buyers are hesitant to take on the associated risks,” Emril Jamil, a senior analyst at LSEG, told Reuters.

Additionally, Russian refinery production has dropped in recent months, largely due to Ukrainian attacks on energy infrastructure. Exports from Black Sea ports have also decreased as a result of harsh winter weather and drone strikes targeting loading facilities.

In 2025, crude oil deliveries to Russian refineries reached their lowest point in at least 15 years, mainly due to unexpected outages following intensified Ukrainian drone attacks on critical infrastructure in the latter half of the year.

Last year, Russia’s refineries received 228.34 million tons of crude oil. This reduction in supply led to a 1.7% year-over-year drop in crude processing rates in 2025, according to figures reported by the Russian newspaper Kommersant.

The Russian oil sector anticipates that lower processing rates and reduced fuel output will persist, citing ongoing risks of further refinery disruptions and limited financial motivation to increase production, as reported by Kommersant last week.

By Tsvetana Paraskova for Oilprice.com