iStories: New US sanctions affected vessels that transported a fifth of Russia’s oil exports in 2024
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On 10 January, the US Treasury introduced one of its most extensive sanctions packages targeting Russia’s energy sector. Among the 187 vessels included, most are identified as part of Russia’s shadow fleet. These sanctions aim to disrupt Russian oil exports significantly.
As Russia adapts by employing strategies like offshore transfers, akin to Iran’s tactics, the demand from major buyers like India and China complicate enforcement, allowing significant volumes to reach global markets. This highlight the challenges of curbing energy trade in a globally interconnected system, with potential ripple effects on oil supply chains and pricing worldwide.
However, a grace period allows already-chartered tankers to operate until 12 March, leading to continued shipments, particularly to India. Analysis by iStories shows that in 2024, these sanctioned vessels facilitated over 20% of Russia’s oil exports, equating to 600 million barrels or 1.6 million barrels daily.
The sanctioned fleet comprises various types of vessels, including tankers, storage ships, shuttle tankers, and supply vessels. Of the 187 vessels, 122 actively transported oil and petroleum products in 2024, while others served auxiliary roles, such as storing or refueling. Notably, 21 vessels on the sanctions list have not been near Russian ports for over a year or were under construction at the time of the sanctions.
India and China
From November 2024 to mid-January 2025, 98 of these vessels departed Russian ports, carrying over 64.1 million barrels of oil worth more than $4 billion. As of January 2025, 21 of these tankers remain en route, transporting 15 million barrels valued at approximately $1 billion. India and China remain the primary destinations for Russian oil, accounting for 75% of the sanctioned fleet’s exports during this period.
The sanctions have caused some tankers to idle near Chinese and Singaporean waters, unable to unload due to the restrictions. Nevertheless, exceptions occur, as evidenced by a sanctioned tanker unloading in eastern China shortly after the sanctions were announced. The sanctions also target tankers owned by companies violating the price cap on Russian oil, even if those vessels have not directly visited Russian ports.
In 2024, several tankers played a significant role in transporting Russian oil. Among the most active were the Si He, Hui Hai, and Surrey Quays, each flagged in Panama and responsible for delivering around 15 million barrels of oil. Other notable vessels, such as the Nichole and Alliance, managed substantial exports but escaped sanctions.
Russia’s port of Kozmino in Primorsky Krai emerged as a key hub for oil exports to China, benefiting from its location at the terminus of the East Siberia–Pacific Ocean pipeline. Meanwhile, three sanctioned LNG tankers, Christophe de Margerie, Pskov, and Veliky Novgorod, supplied liquefied natural gas to Belgium and Türkiye in 2024. Christophe de Margerie alone accounted for 28% of Belgium’s Russian LNG imports.
Shuttle tankers from the sanctions list serviced key Russian oil platforms, such as Prirazlomnaya and Varandey in the Barents Sea, while supply vessels supported operations in the Sea of Okhotsk. One such vessel, Vitus Bering, operated near the Berkut platform, Russia’s largest offshore oil and gas facility.
Some vessels, including Sanar 7, Sanar 8, and Boray, functioned as storage tankers, receiving oil from smaller tankers for transfer to larger ships. Despite not entering Russian ports for years, these vessels fell under sanctions due to their role in facilitating Russian oil exports. Similarly, the tanker Oxis was sanctioned for engaging in clandestine oil transfers at sea, a practice documented by journalists in 2024.
The Iranian strategy
The sanctions are expected to disrupt Russian oil supply chains, forcing the country to adopt strategies similar to Iran’s, where oil is transferred between tankers at sea to obscure its origin. This approach could increase the use of smaller ports and offshore transshipment zones.
India has stated it will not reduce its purchases of Russian oil, while China has yet to comment on the new sanctions. Experts predict a six-month adjustment period as stakeholders adapt to the restrictions, creating new logistics chains and pricing structures.
This evolving situation underscores the complexity of enforcing sanctions on a global scale, particularly in the oil industry, where demand from countries like India and China continues to sustain Russian exports.
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