This is reported by RBK-Ukraine referencing Reuters. This information comes from Kontrakty.UA.
According to traders and shipping companies, trade in Russian oil loaded in March has halted in Asia due to a significant price gap between buyers and sellers in China.
This occurred after the freight rates for tankers, which were not affected by U.S. sanctions, surged dramatically.
Traders report that offers for Russian ESPO Blend oil, exported from the Pacific port of Kozmino, increased by $3-5 per barrel over the ICE Brent price on a delivered ex-ship (DES) basis to China after Aframax tanker freight rates on this route skyrocketed by several million dollars.
Prior to the imposition of sanctions, sustained winter demand and rising prices for competing oil grades from Iran led to spot premiums for ESPO Blend oil to China nearing $2 per barrel, marking the highest level since the full-scale war of the Russian Federation against Ukraine, which triggered discounts of up to $6.
Last week, the Chief Financial Officer of the Indian company Bharat Petroleum Corp Ltd informed the agency that the company had not received any new offers for March supplies, which was unusual. The company anticipates a decrease in the number of cargoes offered for March compared to January and December.
Last year, imports of Russian crude oil to India accounted for 36%, while nearly one-fifth of the total import volume was attributed to China.
According to the analytical company Kpler, the latest sanctions target tankers that carry about 42% of Russia's maritime oil exports, primarily to China, although sanctioned tankers are gradually unloading oil in China and India during the sanctions waiver period.
As the Indian Minister of Oil, Pankaj Jain, explained to reporters, the U.S. has clarified to India that tankers loaded with Russian oil must unload by February 27 in accordance with the sanctions. He stated that payments for oil on board the sanctioned vessels must be made by March 12.
U.S. Sanctions Against Russia
Recall that on January 10, the U.S. Department of the Treasury announced new extensive sanctions against the Russian energy sector, including the largest oil company "Gazprom Neft" and "Surhgutneftegas", to impede Moscow in its war against Ukraine, depriving it of billions of dollars each month.
The sanctions also affect over 180 vessels and dozens of oil traders, service providers in the oil industry, insurance companies, and energy sector officials.
According to Kpler, the latest sanctions have impacted tankers that account for about 42% of Russia's maritime oil exports, primarily to China.
As reported by Reuters, the new U.S. sanctions against Russian oil companies represent the most extensive restrictions on the energy sector of the aggressor country. Russia could be losing billions of dollars each month.