This is reported by RBK-Ukraine referencing Reuters. The information was also shared by Kontrakty.UA.
According to traders and shipping companies, the trade of Russian oil loaded in March has halted in Asia due to a significant price gap between buyers and sellers in China.
This occurred after freight rates for tankers, not affected by US sanctions, surged dramatically.
Traders report that offers for Russian ESPO Blend crude oil, exported from the Pacific port of Kozmino, have risen to $3-5 per barrel above ICE Brent prices on a delivery ex-ship (DES) basis to China, following a spike in Aframax tanker freight rates on this route by several million dollars.
Before the sanctions were imposed, steady winter demand and rising prices for competing Iranian oil led to spot premiums for ESPO Blend crude to China reaching nearly $2 per barrel, the highest level since the onset of the full-scale war by the Russian Federation against Ukraine, which caused discounts of up to $6.
Last week, the Chief Financial Officer of Indian company Bharat Petroleum Corp Ltd informed the agency that the company had not received any new offers for March shipments, which is unusual. The company anticipates a decrease in the number of shipments 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 imports were from China.
According to analytics firm Kpler, the latest sanctions target tankers that carry about 42% of Russia's maritime oil exports, primarily to China, although the sanctioned tankers are gradually discharging oil in China and India during the sanctions waiver period.
Indian Oil Minister Pankaj Jain informed journalists that the US explained 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.
US Sanctions Against Russia
Recall that on January 10, the US Department of the Treasury announced new extensive sanctions against the Russian energy sector, including the largest oil company "Gazprom Neft" and "Surgutneftegas," to hinder Moscow in its war against Ukraine, depriving it of billions of dollars monthly.
The sanctions also affect over 180 vessels and dozens of oil traders, service providers in the oil industry, insurance companies, and officials in the energy sector.
According to Kpler, the latest sanctions have impacted tankers that account for about 42% of Russia's maritime oil exports, mainly to China.
As reported by Reuters, the new US sanctions against Russian oil companies are the most extensive restrictions on the energy sector of the aggressor country. Russia may be losing billions of dollars each month.