Three Russian oil tankers flagged under Panama and Gabon are stranded in the Yellow Sea due to recent U.S. sanctions imposed last week. These sanctions have led to China rejecting vessels from Russia's so-called 'shadow fleet' as they are now sanctioned. The ships were set to deliver over two million barrels of oil to China.
The Huihai Pacific tanker, carrying nearly 770,000 barrels of ESPO oil, was scheduled to arrive at Dongjiakou in Shandong Province on January 15. The Mermar tanker, which left Kozmino on January 5 with over 755,000 barrels of ESPO, was expected to dock at the Yantai port this week but is now waiting offshore. Another tanker, Olia, loaded with 709,000 barrels of the same oil, has also altered its route and is currently in the Yellow Sea.
U.S. President Joe Biden stated that these sanctions are among the most powerful since the beginning of Russia's full-scale invasion of Ukraine. The new package targets over 400 individuals and entities in Russia's energy sector, impacting oil, gas, drilling, and insurance companies.
In addition to China, India is also moving to reject Russian oil tankers. According to Bloomberg, Indian officials indicated that Russian vessels will be barred from unloading. Indian refiners are negotiating short-term agreements with Middle Eastern suppliers and may seek additional barrels based on market conditions. Furthermore, Indian banks will require certificates of origin to ensure the oil does not come from sanctioned suppliers.
This shift could result in Russia losing up to 20% of its total oil exports.