Tue Jun 17 05:45:47 UTC 2025: **News Article:**
**Russian Oil Shipping Costs to India Fluctuate Amid Sanctions, Price Cap Proposals**
**MOSCOW – June 17, 2025** – Shipping rates for Russian crude oil from Baltic ports to India experienced a decrease between late May and early June due to increased tanker availability. However, this trend could reverse if the European Union’s proposed reduction of the G7’s price cap on Russian oil is implemented.
The EU is proposing a new sanction package against Russia, including lowering the G7’s price cap on Russian crude from $60 to $45 per barrel. The $60 cap, established in late 2022, restricts access to Western shipping and insurance for above-cap purchases, aiming to limit Moscow’s revenue.
The price of Russia’s Urals crude has stabilized below $60 per barrel since April, currently at about $54.72 per barrel when loaded from Primorsk. This has allowed some Western, primarily Greek, shipping companies to resume services, increasing tanker availability and driving down freight rates.
The cost of shipping Urals oil from Baltic ports to India has fallen to between $5.5 million and $5.7 million per one-way shipment, compared to $6 million in April-May and $8 million in early March.
These lower rates follow a sharp increase in shipping costs after new U.S. sanctions in January targeted Russian energy interests, forcing Russian oil sellers to seek alternative tankers. Freight rates remain higher than in January, when shipping costs were between $4.7 million and $4.9 million.
The potential impact of the EU’s proposed price cap reduction remains uncertain, but it could significantly affect tanker availability and consequently raise shipping costs for Russian oil destined for India.
First Piper 