U.S. Sanctions Force Russian Oil Tanker to Discharge in China

CNChina|

A Panama-flagged tanker, the Mermar, has discharged Russian oil at Longkou port in China's Shandong province, despite being designated under new U.S. sanctions. This marks the first incident of a sanctioned vessel discharging in the region since the recent sanctions were announced targeting over 180 ships linked to Russian oil exports.

The tanker, carrying 80,000 metric tons of Russian ESPO Blend crude, was loaded on January 6 from Kozmino port and docked on January 15. The U.S. sanctions aim to disrupt oil supplies from Russia, which is the world's second-largest oil producer. The Office of Foreign Assets Control has imposed these restrictions to curb Russia's oil revenues, particularly as the tanker had called at a Russian port where oil prices exceeded the $60 cap set by Western nations.

Driven by strong demand for alternatives to Russian oil, particularly from China and India, the discharge of the Mermar will be closely monitored by traders assessing the effectiveness of the sanctions. The vessel was among those classified as part of Russia's shadow fleet, used to evade previous sanctions. The sanctions include a grace period for cargoes loaded before January 10 and unloaded before March 12 but have already impacted some shipments.

Shandong Port Group, which operates in the region, did not respond to inquiries following the incident.

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