Sanctions and the reorganization of Russian energy supply chains

Han, Jeong Hugh and Phan, Truc Thi Nha 2026. Sanctions and the reorganization of Russian energy supply chains. Hoang, Thinh Gia, ed. Geopolitics, War, and the Strategic Repositioning of Supply Chains, IGI Global Scientific Publishing, pp. 303-330. (10.4018/979-8-2600-1268-0.ch012)

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Abstract

Economic sanctions do not necessarily terminate targeted trade; they can reorganize its geography, governance, cost, and transparency. This chapter examines the restructuring of Russian seaborne crude-oil and petroleum-product exports between 2022 and 2025 against a 2019–2021 baseline. It develops a framework connecting sanctions to four organizational responses: customer substitution, transportation rerouting, commercial intermediation, and maritime-service substitution. The analysis shows that oil exports could be redirected toward Asian markets because crude oil is relatively fungible and transportable by sea, whereas pipeline-dependent natural gas faced greater infrastructural constraints. Trade continuity nevertheless required longer voyages, price discounts, alternative payments, new intermediaries, and greater reliance on opaque tanker and insurance arrangements. The chapter argues that export volume alone is an inadequate measure of sanctions effectiveness because adaptation can preserve physical flows while reducing revenues and increasing logisticaland environmental risks.

Item Type:	Book Section
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Publisher:	IGI Global Scientific Publishing
ISBN:	9798260012680
Last Modified:	28 Oct 2026 15:13
URI:	https://orca.cardiff.ac.uk/id/eprint/190506

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