Cost of shipping Russian oil to China increases fivefold following US sanctions – Bloomberg
Pravda Ukraine
The cost of shipping Russian ESPO crude oil to China has spiked further, rising nearly fivefold compared to pre-sanction levels imposed by the United States.
Source: Bloomberg
Details: The fee to ship oil from Russia’s Pacific port of Kozmino to China reached US$7 million this week, said traders familiar with the route, who wished to remain anonymous due to the sensitivity of the matter. For comparison, the rate stood at US$5.5 million last week and just US$1.5 million before the US sanctions were introduced.
Chinese ports have become more cautious in handling tankers subject to sanctions, destabilising the ESPO oil trade. Many vessels previously used on this route have been blacklisted, forcing other tankers – traditionally servicing western Russian ports –to redirect their routes eastward to supply oil to China.
One of the latest tankers to join this route is the Legend. It loaded its cargo at Kozmino port for the first time on 20 January and is set to unload in Huizhou, southern China, according to data from Kpler. Previously, the Aframax vessel transported Urals crude from western Russian ports such as Ust-Luga and Primorsk.
Background: The state-owned Indian Oil Corp may need to reconsider its oil procurement sources due to the new US sanctions against Russia, which are affecting supplies from Moscow. As a result, India’s largest oil refiner is now compelled to seek alternative suppliers.
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