Sanctions slash Russian crude exports, products stay under pressure in November

Russian crude exports in November declined as US sanctions took effect and further EU sanctions drew closer, while refined product exports remained stagnant.

Russian crude exports dropped 17% month over month and 6% year over year to 3.34 million b/d in November, the lowest since February, data from S&P Global Commodities at Sea showed.

Exports to India fell the most, plunging 57% month over month and 50% year over year to 791,000 b/d. Shipments to China fell 25% month over month and 34% year over year to 804,000 b/d, while deliveries to Turkey fell 43% month over month and 53% year over year to 198,000 b/d, CAS data showed.

US sanctions on Russian oil giants Rosneft and Lukoil took effect on Nov. 21, in a significant policy shift that could widen discounts on Russian crude, hit exports, and disrupt operations across foreign assets held by the two companies.

Platts, part of S&P Global Energy, assessed Urals crude on a FOB basis at Primorsk at an average of $49.49/b in November, a discount of $14.17/b to Dated Brent, wider from $12.34/b in October.

US sanctions include a full transaction ban from Nov. 21, and potential secondary sanctions on the companies' trade partners.

On Nov. 20, Indian refiner Reliance Industries said that it had stopped importing Russian crude into its export-oriented refinery in the Jamnagar complex, and refiners across the country have appeared to draw additional crude from the Middle East to substitute supplies.

Earlier, the EU announced a new import ban on refined products made from Russian oil, vowing to end trade flows arriving "through the back door" starting Jan. 21.

Reliance's decision came after stricter-than-expected sanctions guidance from the Intercontinental Exchange, which signaled a declining appetite to utilize the exemptions provided under EU law.

Product cargoes under attack

Russian product exports floated around the 2 million b/d mark in November. Exports were 2.03 million b/d, representing the third month in a row of modest increases but still below levels from January 2022 to September 2025, CAS data showed.

Ukrainian attacks have recently caused significant disruptions to Russian oil refining and oil products supply. Mounting pressure on Russia's refining sector has also affected local fuel supply and prompted refiners to prioritize domestic markets, analysts at S&P Global Energy CERA said.

"While Ukraine has frequently targeted Russian naval warships, direct attacks on commercial tankers have been rare," Energy CERA analysts said in a note. "The strike on the Kairos and Virat marks a shift toward broader economic warfare against Russia's 'shadow fleet'."

Turkish imports of Russian diesel/gasoil reached a 34-month low in November, according to CAS data, as US sanctions on Russian oil producers made local participants reluctant to import Russian barrels.

Besiktas Shipping will stop all Russia-related businesses over safety concerns, the Turkish ship manager said Dec. 2 after explosions on one of its tankers off Senegal and multiple ship attacks in the Black Sea since late November.

The Panama-flagged ship had been transporting gasoil in several shipments from Russia's Black Sea ports to Turkey and Senegal, according to CAS data.