In 2026, Russia’s oil exports through the Northern Sea Route (NSR) have increased by nearly 50% compared to last year, with around 20 million barrels shipped to Asia from July to mid-October. The NSR connects Russia’s western ports to Asian markets, although it is known as a riskier and costlier route. This year, it gained appeal due to disruptions in other transport routes like the Suez Canal and the Strait of Hormuz.
Tanker freight rates have reached record highs due to conflicts in Iran and Ukraine, causing Asian refiners to seek alternatives to costly US crude oil. The high fees for using the NSR, which requires icebreaker help, became less expensive compared to routes through the Red Sea. For Russia, the NSR offers a safe way to export oil, avoiding issues faced in European waters.
Estimates suggest that oil exports through the NSR may rise by another 5-10 million barrels by the navigation season’s end. Gazprom Neft plans to increase its NSR shipments by about 35% this year. Additionally, LNG exports through the NSR are expected to grow with the launch of Arctic shipments. President Putin stated that cargo turnover via the NSR could double to 70 million metric tons annually by the decade’s end, while Rosneft’s new Vostok Oil project is boosting export volumes.
With information from Reuters
