Transportation of Russian oil to China tripled in price due to sanctions

The transportation of Russian oil to Chinese ports has tripled in price due to recent sanctions.

Thus, rates for transporting oil from the Far East to China have increased to $5-5.5 million, Bloomberg reports.

Before the sanctions were imposed, freight rates for transportation in this direction were about $1.5 million.

According to market participants, tariffs for transporting oil from Russia to China will continue to grow.

Earlier, USM reported that a tanker under sanctions is unloading oil at a Chinese port that has banned such vessels from entering.

The Panamanian-flagged Mermar oil tanker docked at the Longkou port in Yantai on Wednesday, January 15. The vessel was carrying 80,000 tons (600,000 barrels) of Russian ESPO crude, which was loaded on January 6 from the port of Kozmino on Russia’s east coast.

The sanctions include a grace period that exempts vessels loaded before January 10 and unloaded before March 12 from restrictions, traders said, but some buyers have already suspended deliveries.

The Mermar was among three tankers that were blocked from entering Chinese ports for several days due to U.S. sanctions.

Last week, Chinese ports in Shandong province banned entry to tankers subject to U.S. sanctions. Last year, the province imported about 1.74 million barrels of oil per day from Iran, Russia and Venezuela, about 17% of China’s imports.