Since Russia’s invasion of Ukraine in 2022, international sanctions have steadily reshaped global oil trade and tanker activity. The EU’s oil embargo and G7 price-cap framework redirected Russian crude flows away from Europe toward Asia, creating longer-haul voyages and structural changes in vessel utilization that continue to define the market today.

Recent sanctions on Russian oil

18 July 2025 – EU 18th sanctions package
The EU expanded its restrictions by blacklisting more than 100 vessels suspected of being part of Russia’s “shadow fleet.” These tankers, often operating under obscure ownership and non-Western insurance, were barred from EU ports and services. The move raised compliance requirements for shipowners and charterers connected to EU infrastructure and further limited Russia’s ability to export through Western maritime channels.

22 October 2025 – US sanctions on Rosneft and Lukoil
The US Treasury’s Office of Foreign Assets Control imposed direct sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, together responsible for more than half of the country’s crude output. The measures froze US-linked assets and prohibited transactions involving the companies and their subsidiaries, significantly increasing secondary risk across global shipping, trading, and insurance networks.

23 October 2025 – EU 19th sanctions package
The following day, the EU adopted its 19th sanctions package, introducing further restrictions on Russian energy logistics and targeting shipping companies, traders, and service providers involved in price-cap circumvention. The package aligned closely with U.S. efforts, reflecting transatlantic coordination in tightening enforcement against Russia’s oil exports.

Trade flow consequences
The latest measures are now influencing trade flows. Indian refiners, previously major buyers of Russian crude, are preparing to sharply reduce imports from late November to avoid exposure to sanctioned entities. Chinese refiners have also moderated purchases as scrutiny intensifies on ship-to-ship transfers and origin verification. According to Reuters, record volumes of oil are currently being stored on vessels to prevent a supply glut from forming in global markets.