A crude oil tanker lies at anchor near the terminal Kozmino in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana Meel
By Weilun Soon
Jan 22, 2025 (Bloomberg) –Tankers that used to haul oil from Russia’s western ports are being redeployed to the nation’s east to service a key crude route to China that’s been crippled by sweeping US sanctions.
Part of the reason is likely money. Freight rates to transport ESPO crude from the Russian port of Kozmino to China more than tripled after the US imposed sanctions on tankers that utilized the route. Most ships typically used for the trade are Aframaxes, which have capacity of around 750,000 barrels.
At least two tankers with Hong Kong-listed owners have started plying the route, according to ship-tracking data compiled by Bloomberg. It’s unclear whether the owners behind the companies are Russian.
The rerouting is a sign that Russian suppliers in the trade are prioritizing Far East routes, said Emma Li, a senior analyst at Vortexa.
The outgoing Biden administration imposed aggressive sanctions on Russia’s oil industry earlier this month, which targeted insurers, traders and around 70% of the ships that served Kozmino. That put ESPO exports of 900,000 barrels a day at risk, and provided an opportunity for other ship operators.
The Jinjiang Experience loaded nearly 770,000 barrels from Kozmino on Jan. 18 and is expected to reach Tianjin in China’s north this week, ship-tracking data shows. The Aframax previously transported Urals from Russia’s western terminals and other grades from the Middle East.
The Maini most recently loaded at Kozmino on Jan. 13 and then discharged its cargo in Dongying in China’s eastern Shandong province. The Aframax started hauling Russian oil — exclusively from the country’s western ports — two years ago, and only made its first trip from Kozmino in late December.
Last week, the Bhilva, which hasn’t previously transported Russian cargoes, appeared to be heading for Kozmino unladen, according to shipbrokers and ship-tracking data. The tanker made a u-turn in the Indian Ocean and is now sailing through the Malacca Strait.
The Jinjiang Experience is owned by Dayu Energy Holdings Co. and Maini by Rong Yu Shipping Ltd., both based in Hong Kong, while Bhilva is owned by Seychelles-based Tika Shipping Ltd. according to maritime database Equasis. None of the companies have an online presence or website.
© 2025 Bloomberg L.P.
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