500,000 Tons of Russian Oil Stranded on Sanctioned Tankers After US Energy Sector Sanctions

Nearly 500,000 metric tons of Russian oil products are stranded on tankers affected by US recent sanctions, according to Reuters, citing LSEG  data released on January 15.

On January 10, the Biden administration announced its most extensive sanctions yet, targeting Russia’s energy sector, including oil producers, tankers, traders, ports, and officials. Over 180 shadow fleet tankers were also targeted by the sanctions.

According to LSEG data, four tankers, Cup, Aquatica, Turaco, and Onyx, are carrying a combined 280,000 tons of fuel oil destined for India, Turkey, and Singapore.

Another tanker, Ariadne, loaded with 35,000 tons of naphtha in December from Russia’s Baltic port of Ust-Luga, is currently drifting near Egypt’s Port Said.

Additionally, four other sanctioned vessels are transporting a total of 160,000 tons of ultra-low sulfur diesel and gasoil of Russian origin.

Despite a transition period permitting the discharge of pre-agreed cargoes, traders report that fears of penalties have significantly slowed activity.

On January 14, a report revealed that China’s state-owned oil giants and private refiners were scrambling to secure crude supplies from the Middle East, Africa, and the Americas, as US sanctions on Russia and Iran threaten to disrupt global fuel flows.