Oman’s Waters: The New Nexus for Russian Oil Shipments Amid Tightening Global Sanctions

Oman is increasingly becoming a pivotal location for ship-to-ship (STS) transfers of Russian oil, especially for cargoes destined for India. This trend is growing as the United States intensifies its scrutiny of Russian oil flows in response to the geopolitical situation following Russia’s invasion of Ukraine. The waters off Oman, notably near the port of Sohar, have witnessed a significant uptick in such activities, highlighted by the recent operation involving the tanker New Discovery, which transferred a substantial load of Russian crude to another vessel, the Caroline Bezengi.

The New Discovery had originally signaled Sikka in western India as its destination in early March. However, after lingering off India’s west coast for more than a week, it redirected back to Oman for the STS transfer. The Caroline Bezengi, the recipient of approximately 1 million barrels of Urals crude from the New Discovery, has not signaled a subsequent destination, suggesting a degree of opacity common in such operations. These transfers are often conducted to obscure the origin of the oil cargoes or to divide shipments to meet specific port draft restrictions. Oman, alongside Fujairah in the United Arab Emirates and regions off Malaysia in Asia, are popular locales for these operations due to their strategic locations and relatively lax regulatory environments.

The increasing preference for Oman as a hub for Russian oil transfers signals a shift in the logistics and strategy of global oil trade, particularly in circumventing sanctions and regulatory scrutiny. This is evident from the activities preceding the New Discovery, where three other tankers offloaded Urals crude to different vessels in Omani waters, which then proceeded to Indian ports since early February.

India’s role as a major purchaser of discounted Russian oil post-Ukraine invasion has become more complicated due to stricter enforcement of U.S. sanctions. The reluctance of Indian refiners to accept oil from sanctioned entities like PJSC Sovcomflot tankers underscores the broader disruptions and adjustments occurring within the international oil market. This scenario not only highlights the geopolitical complexities influencing the global energy landscape but also the adaptive strategies employed by state and non-state actors to navigate the evolving sanctions regime and maintain the flow of critical energy resources.