Sanctions triple Russian oil transport costs via shadow fleet
The cost of transporting Russian oil via the "shadow fleet" has tripled following implementing the latest American sanctions package, Bloomberg reported on Thursday, emphasising that, according to experts, the price is expected to rise further.
As reported by the agency, freight rates for transporting oil from the eastern coast of Russia to China increased on Monday from approximately $1.5 million to $5 million, and even $5.5 million. Most of the vessels on this route have a capacity of 750,000 barrels.
Friday's American sanctions targeted two Russian extraction companies and over 100 tankers. According to the International Energy Agency, a quarter of Russian oil exports by sea were handled by the "shadow fleet".
Sanctions hit Russia
The agency noted that the immediate impact of the sanctions package was also visible in other areas. Data from companies monitoring ship routes showed that several tankers carrying Russian oil anchored off the coast of China without unloading.
The agency stated that the ports in Shandong province, where many refineries operate, began introducing restrictions even before the publication of the latest sanctions package. These restrictions prevent the unloading of "shadow fleet" vessels.
However, the sanctions were primarily aimed at ships transporting crude oil, not processed petroleum products. According to the International Energy Agency, last month, the increase in Moscow's revenue from fuel exports exceeded the decline in crude oil revenues, the agency emphasised.
Last autumn, the "Financial Times" reported that the "shadow fleet" was transporting nearly 70% more oil than in 2023, which increases ecological risk. The "shadow fleet" includes used, ageing, and low-insured tankers. As recently as June 2023, they were transporting 2.4 million barrels of oil per day. In contrast, by June 2024, this value had increased to 4.1 million barrels.
