Published by Global Banking and Finance Review
Posted on August 29, 2025
2 min readLast updated: January 22, 2026
Freight rates for Russian crude oil rose in August due to EU sanctions and increased demand, impacting shipping costs from Baltic ports.
MOSCOW (Reuters) -Freight rates for Russian crude shipments from Baltic ports to India have risen in August, driven by fresh European Union sanctions and increased demand for tankers after higher loading volumes this month, trade sources said and shipping data showed.
The cost of shipping Urals crude from Baltic ports such as Ust-Luga to India has climbed to about $6 million per one-way trip, up from $5.3 million to $5.5 million in July and early August.
Rates for similar shipments from Russia’s Black Sea port of Novorossiisk by Suezmax tankers, which can hold 140,000 metric tons, have risen to around $5.5 million from $5.2 million a month earlier.
Russia has revised up its August crude oil export plan from western ports by 200,000 barrels per day from the initial schedule after Ukrainian drone attacks disrupted refinery operations and freed up more crude for exports.
The European Union and Britain last month imposed further sanctions on Russia over its actions in Ukraine.
The EU imposed a moving price cap on Russian crude at 15% below its average market price. That means roughly $47.60 per barrel at present, well below the $60 cap that the Group of Seven major economies have tried to impose since December 2022.
The cap, introduced in late 2022, restricts access to Western shipping and insurance services for oil sold above the threshold.
Together with U.S. restrictions, more than 440 so-called shadow fleet tankers transporting Russian oil face sanctions, including tankers Moscow needs to ship oil to its biggest buyers, China and India.
Despite the sanctions, Western shipowners have returned to the Russian oil market in 2025 as Urals prices have largely remained below the $60 per barrel cap since early April, stabilising tanker availability and exerting downward pressure on freight rates.
Greek shipping firms have been among the most active in resuming services.
Freight rates remain elevated compared to January 2025 levels, when shipping costs from Baltic ports to India ranged between $4.7 million and $4.9 million per voyage.
(Reporting by ReutersEditing by Mark Potter)
A freight rate is the charge levied by a carrier for the transportation of goods. It can vary based on distance, weight, and type of cargo.
EU sanctions are restrictive measures imposed by the European Union against countries, individuals, or entities to influence behavior or policies, often in response to violations of international law.
Urals crude oil is a blend of crude oil produced in Russia, known for its medium density and sulfur content, often used as a benchmark for pricing other crude oils.
A Suezmax tanker is a large oil tanker designed to fit through the Suez Canal, typically capable of carrying around 120,000 to 200,000 deadweight tons.
A price cap in oil trading is a regulatory limit set on the price at which oil can be sold, aimed at controlling market prices and preventing excessive charges.
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