U.S. sanctions on Russia’s oil trade have grounded 61% of blacklisted tankers, disrupting Russia’s oil supply chain, report Julian Lee and Alex Longley of Bloomberg. The sanctions are forcing Russia to find alternative ships and face high costs, while major buyers like India, China, and Turkey are hesitant to handle sanctioned shipments, causing logistical delays. They write:
The latest US sanctions on Russia’s oil trade have brought a swath of tankers that deliver Moscow’s crude to a halt — reinforcing the significance of the measures in any negotiations over ending the war in Ukraine.
About 60% — 94 out 154 — of the active tankers blacklisted by the outgoing Biden administration last month for their involvement in the Russian oil trade have stopped hauling barrels for Moscow or anyone else, ship-tracking data compiled by Bloomberg show. Another seven were under construction or undergoing sea trials. […]
Of 44 that have taken on cargoes since being blacklisted, 20 are operating solely within Russia. Another nine are specialized shuttle ships used by two projects on Sakhalin Island in Russia’s Far East, most of which are struggling to offload their consignments.
However, some buyers and buyer countries have balked at dealing with sanctioned shipments in the wake of the US Treasury’s measures. […]
The Indian government has said it won’t allow sanctioned ships to dock at its ports after Feb. 27 and before then only if they are carrying cargoes loaded prior to Jan. 10. Many ports in China’s Shandong province, a hub for independent refiners, are wary of handling sanctioned tankers after a warning from a major terminal operator. Likewise, the biggest refiner in Turkey, Russia’s other major customer, is also restricting purchases to avoid falling foul of US sanctions. […]
The first of the ships carrying Arctic crude from Murmansk are still at least a week away from their destinations.
Several previously identified as heading to India are now signaling North China or possible storage locations off Oman.
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