Russia's Arctic oil industry is grappling with severe disruptions following recent US sanctions targeting tankers and storage infrastructure.
These measures have halted crude oil deliveries to Asian buyers, leading to logistical challenges and growing stockpiles, according to Reuters.
Key Arctic Oil Fields Affected
The sanctions impact Russia’s three main Arctic oil fields — Novoportovskoye, ARCO, and Varandey — which collectively produce approximately 300,000 barrels of oil per day. These fields rely on specialized infrastructure and vessels to transport oil in Arctic conditions, making them especially vulnerable to the sanctions.
Together, they account for 10% of Russia's seaborne oil exports.
Among the assets affected are floating storage units such as Umba and Kola, as well as over a dozen Arctic shuttle tankers, including the Shturman Shcherbinin, Mikhail Ulyanov, and Aulis.
The sanctions have left millions of barrels of Arctic crude stranded in storage, as the infrastructure required to redirect oil into Russia's domestic pipeline network is lacking. With limited storage capacity, prolonged shipment delays could force production cuts at the affected fields.
Although Lukoil, the operator of the Varandey field, has avoided direct sanctions, the overall impact on Russia’s energy sector remains significant.
Arctic oil operations, dependent on highly specialized logistics, now face uncertainty as Russia scrambles to find alternative buyers or shipping solutions.
Previous analyses indicated that the latest US sanctions could result in a 27.5% reduction in Russia’s maritime oil exports.
