Russian oil tankers rerouted from China to India after US sanctions waiver

Thursday 19 March 2026 - 08:20

By: Dakir Madiha

Russian oil tankers rerouted from China to India after US sanctions waiver

Several tankers carrying Russian crude originally bound for China have changed course mid-voyage and are now heading to India, as Indian refiners take advantage of a temporary US sanctions waiver to secure discounted supplies amid a global energy crisis.

The Aframax tanker Aqua Titan, loaded with Urals crude from a Baltic Sea port in late January, reversed direction in the South China Sea after initially listing Rizhao in China as its destination. The vessel is now expected to arrive at New Mangalore in India on March 21. Data from cargo tracking firm Vortexa shows that at least seven tankers have been redirected from China to India while at sea.

The shift follows a 30-day waiver issued by the US Treasury on March 5, allowing Indian refiners to purchase Russian oil already loaded on vessels and stranded at sea. Treasury Secretary Scott Bessent described the measure as temporary and said it would not provide significant financial benefit to Russia, framing it as a response to disruptions in global energy markets linked to the Middle East conflict.

Indian refiners moved quickly after the waiver announcement, purchasing around 30 million barrels of Russian crude within a week. Major refining companies resumed buying, including Reliance Industries, which began seeking cargoes shortly after the policy change. Another tanker, the Suezmax Zouzou N., carrying CPC Blend crude from the Russian port of Novorossiisk on the Black Sea, has also been redirected to India’s Sikka port with an expected arrival on March 25.

The surge in demand for Russian crude is tied to the closure of the Strait of Hormuz following US and Israeli strikes on Iran in late February 2026. The waterway, which handles roughly 20 percent of global daily oil supply, has been effectively shut since early March, pushing Brent crude prices above $100 per barrel for the first time in four years.

India, the world’s third-largest crude importer, had previously scaled back purchases of Russian oil after the United States imposed a 25 percent tariff on Indian imports in response to its trade with Moscow. That tariff was lifted in February, and the subsequent waiver further enabled a resumption of trade flows.

Japan and South Korea have also secured waivers to resume imports of Russian crude, raising the likelihood of additional cargo diversions from China in the coming weeks.