Russian oil transport costs triple under new US sanctions
The cost of transporting Russian oil through the "shadow fleet" has tripled following the implementation of the latest American sanctions package, Bloomberg reported on Thursday, noting that experts anticipate further price increases.
According to the agency, freight rates for transporting oil from Russia's eastern coast to China rose on Monday to about $5 to $5.5 million from around $1.5 million. Most ships on this route have a capacity of 750,000 barrels.
Friday's American sanctions targeted two Russian extraction companies and over 100 tankers. The International Energy Agency stated that 25% of Russia's seaborne oil exports were managed by the "shadow fleet".
Sanctions impact russia
The agency noted that the immediate effects of the sanctions package were also evident in other areas. Data from companies that track ship routes showed that several tankers carrying Russian oil anchored off the coast of China without unloading.
Ports in the Shandong province, which is home to many refineries, started imposing restrictions that prevented the unloading of "shadow fleet" ships even before the latest sanctions package was announced, the agency reported.
However, the sanctions mainly targeted ships carrying crude oil, not processed petroleum products. According to the International Energy Agency, last month, the increase in Moscow's revenues from fuel exports offset the decline in revenues from crude oil, the agency noted.
Last fall, the Financial Times reported that the "shadow fleet" transported nearly 70% more oil than in 2023, increasing ecological risks. The "shadow fleet" consists of worn-out, aging, and underinsured tankers. By June 2023, they were transporting 2.4 million barrels of oil per day. By June 2024, this figure had risen to 4.1 million barrels.
