Six Sanctioned Russian Tankers Heading to China

Shipping data shows six tankers carrying Russian oil in ships sanctioned by the US were sailing to Chinese ports this week according to Reuters. It is however unclear if they would be allowed to discharge the cargoes.

• The purchases by China would help ease the glut of more than 10mbbls of Russian Sokol oil floating in a dozen tankers over the past three months without a buyer.
• If China rejects the tankers, it would further worsen the problems for Russia, which has been struggling with Sokol oil sales and payments amid increase pressure from Western sanctions.
• The Russian-flagged tanker NS Century, sanctioned by the US for price cap evasion, anchored at close to China's Qingdao port on Wednesday, according to LSEG data and analytical firms Vortexa and Kpler.
• "Chinese ports may be more concerned with subsequent payment issues than allowing these ships to offload, as that could mean oil stuck at ports," an industry source said.
• The tankers Krymsk, Liteyny Prospect, Nellis, NS Antarctic and Sakhalin Island, all sanctioned by the US, are heading to China's ports carrying 4.1mbbls and are set to offload early in March, according to LSEG and Kpler data.