Shandong port in China bans U.S.-designated vessels

As reported by Reuters, if this restriction is enforced, shipping costs for Shandong's independent refiners — who are the primary buyers of discounted sanctioned crude from the three countries — will rise, traders say. Last month, the U.S. imposed additional sanctions on companies and shadow fleets involved in Iranian oil. President-elect Donald Trump, who takes office on January 20, is expected to strengthen sanctions against Iran, following his actions during his first term.

Shandong Port Group manages China’s east coast ports, such as Qingdao, Rizhao, and Yantai, which serve as critical entry points for sanctioned oil. This decision follows the U.S. Department of Defense’s blacklisting of COSTCO, a major Chinese shipping company, and others for alleged connections to military activities.

The European Union’s 15th sanctions package, approved on December 16, added 52 more vessels from third-party countries allegedly aiding Russia’s energy sector and transporting military equipment for the Russian army. This brings the total number of EU-sanctioned vessels to 79, which are now prohibited from entering EU ports or receiving services from European companies.

The "shadow fleet" accounts for nearly 70% of Russian oil shipments by tanker. The Atlantic Council reports that it handles about three-quarters of Russia's oil exports, revealing the challenges Western countries face in reducing Russia’s oil income through the imposition of a price cap, as noted by the Guardian.

• Reports suggest that President Joe Biden’s administration plans to impose sanctions on more tankers from Russia’s "shadow fleet" involved in oil trading.
• Russia's “shadow fleet” expands along with concern among allies.