Three tankers from the Russian shadow fleet carrying over 2 million barrels of oil have been blocked off the coast of eastern China due to US sanctions.
Points of attention
- Three tankers from the Russian shadow fleet carrying over 2 million barrels of oil are stuck off the coast of eastern China due to US sanctions, impacting oil refiners in India and China.
- The latest package of US sanctions targets more than 400 individuals and organizations in the Russian energy sector, causing complications in the export and purchase of oil.
- The US sanctions have forced Russian shadow fleet tankers to seek alternatives, potentially leading to higher oil prices and transportation costs for oil refineries in India and China.
- The new sanctions are a response to the Kremlin's actions in Ukraine, affecting the movement of tankers from the Russian shadow fleet to Chinese ports and prompting the need for alternative oil sources.
- Oil refineries in India and China may now have to rely on oil from the Middle East, Africa, and America due to the limitations on Russian oil exports, which could have significant economic implications.
What is known about China's refusal to accept tankers from the Russian shadow fleet?
According to the publication's journalists, the tanker Huihai Pacific was supposed to arrive at the port in Dongjiakou in Shandong province on January 15 with 770,000 barrels of oil loaded in the Russian Pacific port of Kozmino in early January.
However, over the weekend, the tanker suddenly changed course and is currently idle at sea with its cargo.
This vessel, along with a large number of other tankers in the Russian shadow fleet, fell under strong US sanctions against the export of Russian energy resources.
At least several more tankers and one oil trader are under sanctions, which actively trades ESPO oil, which is eagerly purchased by Chinese oil refining companies.
The Mermar vessel left Kozmino on January 5 with more than 755,000 barrels of ESPO and was due to enter the port of Yantai this week, but is now waiting off the coast.
The Olia vessel left the Russian port on January 7 with almost 709,000 barrels of this type of oil and was also headed for Yantai, but is currently in the Yellow Sea.
A few days after the Chinese company Shandong Port Group Co, which manages several ports, called for a stop to accepting tankers from the Russian shadow fleet, the US imposed new strong sanctions.
What is known about the new powerful US sanctions against Russian oil exports?
The latest large-scale US sanctions package covers more than 400 individuals and organizations in the Russian energy sector that are financing the Kremlin's criminal war against Ukraine.
Oil refineries in India and China will have to purchase more oil from the Middle East, Africa and America, which will lead to higher prices and transportation costs.
