China blocks ships bypassing sanctions

[william]

The Shandong Port Group (SPG) in China's Shandong Province has announced that tankers subject to U.S. sanctions will not be accepted at certain ports. The shadow fleet will not be allowed to dock at the ports of Yantai, Rizhao, and Qingdao. This decision could affect oil imports to China, the world's largest importer of this resource.

The decision by the Shandong Port Group (SPG), the operator of ports in China's Shandong Province, involves halting services for certain maritime vessels. This concerns the so-called shadow fleet, a group of outdated ships illegally transporting oil. These ships enable Russia to circumvent Western sanctions. They provide revenue to the Russian budget and allow for financing the expansion of military forces.

Reuters reported on the decision of the Chinese operator Shandong Port Group, citing its own sources in the oil industry. The company controls the largest ports on China's eastern coast, including Qingdao, Rizhao, and Yantai. Shandong Province is a major route for importing oil from Russia, Venezuela, and Iran.
These ports will no longer service those vessels that bypass sanctions. This decision could impact oil imports to China.

The shadow fleet consists of about 670 tankers, of which 250 to 300 carry oil from Russia. In 2023, China purchased 118 million tons of oil from Russia, making Moscow the largest resource supplier to China.

The ban may slow down and increase the cost of imports if refineries use tankers that are not under sanctions. Although Beijing presents itself as neutral in the Russia-Ukraine conflict, it opposes the sanctions imposed on Moscow.

China blocks ships bypassing sanctions, sends message to Russia

The Shandong Port Group (SPG) in China's Shandong Province has announced that tankers subject to U.S. sanctions will no…

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