Russia’s Arctic Oil Feels The Chill From U.S. Sanctions

MOSCOW, Jan 14 (Reuters) – Russia’s vast Arctic oil business is facing major disruption from U.S. sanctions on its tankers and depots, stranding crude supplies previously snapped up by Asian buyers in storage, according to three sources familiar with its logistics.

The sanctions unveiled on Friday are the toughest yet on Russia’s oil sector, targeting major producers Gazprom Neft and Surgutneftegas as well as 183 vessels that have shipped Russian oil.

Three sources who spoke to Reuters on condition of anonymity said all three of Russia’s Arctic oil grades – Novy Port, ARCO and Varandey, with about 300,000 barrels of output per day – face disruption.

The vessels and infrastructure needed by Russia’s Arctic oil business, which accounts for a tenth of its seaborne oil exports, are unique, two of the sources said.

Novy Port crude from Gazprom Neft’s Novoportovskoye field, where temperatures can hit -55 C, ARCO, from the Prirazlomnaya offshore platform, and Varandey, from Lukoil’s Timan-Pechora fields, are shuttled by a special type of ice-class vessel to the Umba and Kola floating storage facilities near Murmansk.

It is then offloaded to larger vessels – Aframax or Suezmax tha…