Shadow Fleet: Sanctions Test in China's Shandong Port

A tanker impacted by new U.S. sanctions discharged Russian oil at China's Shandong Port, a hub for independent refineries. The situation is closely monitored given the sanctions' grace period. The tanker is part of Russia's 'shadow fleet,' and its operations involve complex international management and insurance arrangements.

A Russian oil tanker, subject to fresh U.S. sanctions, has docked at Shandong Port in eastern China, according to shipping data from LSEG Eikon. This marks the first delivery since the new sanctions were unveiled last week, impacting a region known for its independent refineries heavily reliant on Russian crude.

The development is being closely watched by industry stakeholders, wary of how the regulatory measures will be enforced. While the sanctions provide a grace period, apprehensions have already led to halted shipments as businesses evaluate potential risks.

The Panama-flagged Aframax tanker, Mermar, arrived at Longkou port, carrying Russian ESPO Blend crude. The vessel is part of Russia's 'shadow fleet,' a group of ships designated by the Biden administration to impede Russian oil flows. Currently managed by Hong Kong-based Ocean Anemone Shipmanagement, the tanker switched its insurance from New Zealand's Maritime Mutual to Russia's Balance Insurance last year.

(With inputs from agencies.)