THE COST OF OIL SUPPLY FROM RUSSIA TO CHINA HAS INCREASED FIVE-PLY AFTER SANCTIONS

The price of crude oil transportation from Kozmino to China has increased to $7 million. Ships that Used to Service Russia’s Western Ports Switch to Trade with China

According to information received from market participants, the cost of transportation of Russian ESPO crude oil to China has increased significantly. It is now almost five times higher than before the introduction of US sanctions against the Russian oil industry earlier this month.

This week, the cost of transporting oil from the port of Kozmino on Russia’s east coast to China was $7 million, according to sources familiar with the situation who wished to remain anonymous. For comparison, last week this figure was $5.5 million, and before the introduction of US sanctions – $1.5 million.

Chinese ports have become more cautious in handling tankers related to sanctions, which have affected trade along the ESPO route. Many ships previously used on this route have been blacklisted. As a result, other ships that previously served Russia’s western ports have turned east and started transporting oil to China.

According to Kpler, the Legend tanker has become one of the latest ships to join the traffic along the ESPO sea route. The loading was first carried out in the port of Kozmino on January 20, and plans to unload the cargo in the port of Huizhou in southern China. Previously, the Aframax vessel transported Ural oil from the western ports of Russia: Ust-Luga and Primorsk.