Oil tankers redirected to sanctioned Russian Pacific port
Pravda Ukraine
Tankers that once transported oil from Russia’s western ports are now being redirected to the eastern part of the country to support the key oil supply route to China, which has been impacted by extensive US sanctions.
Source: Bloomberg
Details: Reportedly, the shift is partly driven by financial factors. Freight rates for transporting oil from Russia’s Kozmino port to China have more than tripled since the US imposed sanctions on tankers using this route.
The majority of vessels typically used for this trade are Aframax tankers, which can carry around 750,000 barrels.
At least two tankers, owned by companies registered in Hong Kong, have started operating on this route, according to ship tracking data compiled by Bloomberg. It is unclear whether the owners of these companies are Russian.
Background:
- Last week, Russia’s maritime oil exports saw their biggest drop since November, following wide-ranging sanctions on the country’s oil trade imposed by outgoing US President Joe Biden. This marked the first signs that these measures are beginning to alter oil flow patterns.
- The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Russia’s two largest oil companies, Gazprom Neft and Surgutneftegas, as well as on the ship insurance providers Ingosstrakh and AlfaStrakhovanie.
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