China's Shandong port blocks US‑sanctioned shadow fleet
The Shandong Port Group in China's Shandong Province will block tankers affected by U.S. sanctions from using its ports. Despite its declared neutrality in the Russia-Ukraine conflict, Beijing opposes sanctions on Moscow.
Shandong Port Group (SPG), the owner of key ports in China's Shandong Province, announced that it will block tankers from the so-called shadow fleet, which are subject to U.S. sanctions. According to the Polish Press Agency, the shadow fleet will not be able to use its facilities. This decision affects the ports in Yantai, Rizhao, and Qingdao. While declaring neutrality in the Russia-Ukraine conflict, the authorities in Beijing oppose sanctions imposed on Moscow.
According to information disclosed by Reuters, SPG has issued a notice prohibiting the acceptance, unloading, and servicing of vessels listed by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury. OFAC has sanctioned many tankers from the shadow fleet used for smuggling oil from Russia, Iran, and Venezuela.
The Biden administration plans to introduce new sanctions that will target the Russian "shadow fleet" and Chinese banks involved in transactions related to Russian oil. These restrictions aim to affect tankers transporting oil priced above $60 per barrel.
Shandong Province hosts numerous refineries, which are the largest importers of crude oil from countries subject to the U.S. embargo. Last year, about 1.74 million barrels of oil daily flowed into China through local ports, accounting for 17 percent of the national import. Traders cited by Reuters note that the ban may slow down and increase the cost of oil imports if refineries decide to use tankers not subject to sanctions.
Russia under sanctions
In response to increasingly widespread sanctions, Russia is developing a strategy of cooperation with China. China, despite its announced neutrality, is actively participating in economic exchanges, helping Russia evade international sanctions. The U.S. administration continues efforts to counter these practices and limit Russia's influence on the global energy market.
The shadow fleet consists of approximately 670 vessels, of which 250 to 300 are used to transport resources from Russia. However, SPG anticipates that the navigation ban will have a limited impact on independent refineries because most oil is transported on tankers not subject to sanctions.
The West, despite the partial effectiveness of the sanctions, faces the challenge of strengthening their long-term efficiency. Wojciech Jakóbik, an energy expert, emphasizes that sanctions are a long-term process that only bear fruit over time. The ruble crisis and Russia's economic problems show that these actions have effects, although they are not yet a final solution.
