The navigation season along Russia's Northern Sea Route is in full swing as three oil tankers converge in the Arctic waters of the Kara Sea. The tankers, two Aframax vessels each carrying around 730,000 barrels of Urals crude from the Baltic ports of Primorsk and Ust-Luga, are en route to Rizhao in China. Simultaneously, a third tanker, sailing in ballast, is making its way from the Chinese port of Yinkou towards Russia. This signals the opening of the Arctic route for business.

Utilizing the Northern Sea Route significantly reduces journey time from Russia's Baltic ports to northern China's refineries, making such voyages more likely for Russian crude carriers in the coming months, often accompanied by icebreakers to facilitate navigation.

In this case, the SCF Baltica, an empty vessel, set sail from southern China and made its way to Russia's Pacific coast port of Kozmino, escorted by the nuclear-powered icebreaker Sibir. Instead of loading ESPO grade crude and heading back to China like other tankers, the SCF Baltica headed northeast, passing between Sakhalin Island and Japan before reaching the Arctic Ocean through the Bering Strait.

Once in the Arctic seas, the tanker rendezvoused with the Primorsky Prospect and the NS Arctic about 170 miles east of the island of Novaya Zemlya and 250 miles north of the mouth of the Yenisei River. These tankers, owned by Russia's Sovcomflot PJSC, are equipped to operate in icy conditions, providing a viable route through the Northern Sea Route.

Using this route reduces journey time to Chinese refineries by up to two weeks or approximately 30% compared to traditional voyages around Europe through the Suez Canal and the Strait of Malacca. However, ships with an ice rating of Ice3 or below can only use this route between July and the end of November.

As the European Union, the US, and the UK imposed sanctions on Russian oil, limiting access to most of the world's tanker fleet, using the Arctic route becomes crucial for delivering oil to China and India, Russia's main remaining large markets. The volume of Russian crude passing through the Arctic may be limited by the availability of escort vessels, with only three modern escort vessels currently operational in Russia. Nonetheless, more Russian crude is expected to traverse the Arctic in the coming months, likely forming small convoys with icebreaker assistance.