Finance
Sanctions, Bad Weather Drive More Ship-To-Ship Transfers of Russian Oil Products, Data Shows
Published by Global Banking & Finance Review®
Posted on March 20, 2026
2 min readLast updated: March 20, 2026
Quick Summary
Russia has increasingly used ship‑to‑ship (STS) transfers of oil products due to Western sanctions and severe winter ice conditions limiting tanker access to Baltic ports. LSEG data shows significant STS volumes involving Ust‑Luga to ports like Port Said, Togo, Morocco and Augusta to meet demand in
Sanctions and Weather Lead to Surge in Russian Ship-to-Ship Oil Transfers
Impact of Sanctions and Weather on Russian Oil Exports
Increase in Ship-to-Ship Transfers
MOSCOW, March 20 (Reuters) - Russia has increased its oil product exports via ship-to-ship transfers after Western sanctions and harsh winter weather triggered a shortage of suitable tankers to serve Russian ports, traders said and LSEG data showed.
Role of Ice-Class Tankers
STS transfers allow in-demand ice-class tankers to focus on transporting products from Russian ports to vessels in the Mediterranean and Atlantic, which then carry cargoes on to Asian ports, rather than making the longer journey themselves.
Global Energy Supply Disruptions
That helps secure cargoes to a variety of destinations as the war in Iran continues to disrupt global energy supplies, driving up oil prices.
Shifts in Export Destinations
Asian countries have become the main destination for Russia's refined product exports since the European Union's full embargo on Russian oil products in 2023.
Winter Weather and Navigation Restrictions
Severe frosts in early 2026 tightened ice navigation rules in the Baltic. From mid-February, non-ice-class tankers were barred from Russia’s Baltic ports, while ice-strengthened Ice1–Ice2 vessels were required to take icebreakers.
Scramble for Tankers and Route Adjustments
A scramble to shorten routes to Asia and secure scarce tankers amid an acute shortage of ice-class vessels, compounded by tightening Western sanctions, has forced traders to push more cargoes through STS transfers, market sources said.
Recent Ship-to-Ship Operations
LSEG data showed that two tankers loaded with about 240,000 tons of naphtha at the Baltic port of Ust-Luga in January carried out STS operations at the Port Said anchorage and off Togo before delivering the feedstock to Singapore.
Expansion of STS Transfers to New Locations
In February, traders also began using STS transfers near Al Hoceima in northern Morocco. Ship-to-ship operations involving naphtha and fuel oil loaded at Russian ports exceeded 200,000 tons at Al Hoceima and Port Said that month, according to shipping data.
Ongoing Operations and Future Outlook
Another two tankers loaded in March at Ust-Luga port with around 95,000 tons of naphtha are now heading towards STS operations near the Italian port of Augusta, LSEG data showed.
(Reporting by Reuters in Moscow. Editing by Jan Harvey)
Key Takeaways
- •Sanctions and harsh winter ice conditions in early 2026 have curtailed tanker availability at Russian ports, pushing traders to rely more on STS transfers to reroute cargoes via Mediterranean and Atlantic vessels as far as Asia (globalbankingandfinance.com).
- •LSEG data indicates notable STS operations: two naphtha‑loaded tankers (~240,000 tons) from Ust‑Luga used STS at Port Said and off Togo before reaching Singapore; in February, over 200,000 tons of naphtha and fuel oil were transferred at Al Hoceima and Port Said; in March, two more Ust‑Luga tankers (~95,000 tons) are heading for STS near Augusta (energyandcleanair.org).
- •STS transfers are part of a broader sanctions‑evasion strategy involving the ‘shadow fleet’—ageing or reflagged tankers circumventing restrictions, undermining their intended impact and raising safety and environmental concerns (energyandcleanair.org).
References
Frequently Asked Questions about Sanctions, bad weather drive more ship-to-ship transfers of Russian oil products, data shows
1Why has Russia increased ship-to-ship transfers of oil products?
Western sanctions and harsh winter weather have caused a shortage of suitable tankers at Russian ports, leading to more ship-to-ship transfers.
2How do ship-to-ship transfers benefit Russian oil exports?
They allow ice-class tankers to focus on short routes from Russian ports, transferring cargo to other vessels for longer journeys, improving efficiency.
3What regions are key destinations for Russian oil products after sanctions?
Asian countries have become the main destination since the EU embargo on Russian oil products in 2023.
4Where are major ship-to-ship transfer locations mentioned in the article?
STS transfer locations include Port Said in Egypt, off the coast of Togo, near Al Hoceima in Morocco, and near Augusta, Italy.
5What specific products are being exported via ship-to-ship transfers?
Naphtha and fuel oil are the main Russian oil products being exported through ship-to-ship operations.
