A U.S.-sanctioned tanker has offloaded Russian crude oil at Longkou port, operated by Shandong Port Group in Yantai, eastern China. According to LSEG Eikon data, the Panama-flagged tanker, Mermar, docked on Wednesday, marking the first such discharge since the U.S. imposed sanctions on 183 vessels last week.
The Mermar carried 80,000 metric tons (600,000 barrels) of Russian ESPO Blend crude, loaded on January 6 from Kozmino port. The cargo is covered under a grace period allowing oil loaded before January 10 to be unloaded by March 12. However, the shipping industry remains cautious, with many shipments halted as traders assess compliance risks.
The sanctions, introduced by the Biden administration, target vessels linked to Russian oil exceeding the $60 price cap. The Mermar is considered part of Russia's "shadow fleet," which has been instrumental in evading previous restrictions. Its registered owner, Merluza Group, is also subject to the new measures.
Prior to the sanctions, Shandong Port Group had prohibited U.S.-sanctioned tankers from its facilities.
This event is being closely monitored, as it may indicate how strictly the new measures will be enforced. The incident highlights the ongoing tension between Western sanctions and China's demand for Russian crude, crucial for its independent refineries.