Exports of flagship Urals crude from Baltic Sea ports may drop by one-fifth in December after the EU price caps and embargo on Russian crude came into effect.

Traders say Russia has been unable to fully divert Urals crude exports from Europe to other markets, particularly India and China, and has struggled to find enough suitable vessels, Reuters wrote.

Urals crude exports from Baltic Sea ports this month are likely to fall to about 5 million tons from 6 million tons in November, according to traders and Reuters calculations.

The European Union, G7 countries and Australia imposed a $60 a barrel price cap on Russian oil, effective Dec. 5, in addition to a European Union embargo on Russian oil imports by sea and similar commitments by the U.S., Canada, Japan and Britain.

The restriction allows non-EU countries to import Russian crude by sea, but prohibits shipping, insurance and reinsurance companies from handling shipments of Russian crude worldwide unless it is sold for less than $60.

Urals crude sold at higher discounts in December, and India, the dominant buyer, bought barrels at a price well below the $60 price cap.

The impact of sanctions on Urals shipments from Russia's Baltic ports is exacerbated by the shortage of non-Western tonnage, weak export economics and moderate demand for the grade in Asia, especially China.