First sanctioned Russia-trading tanker enters Shandong port during exemption window
Aframax Mermar docked at Longkou on January 15, after remaining at anchorage for four days
Panama-flagged Mermar is the first Ofac-designated tanker to have been allowed to dock at a port in Shandong since the sweeping sanctions on Russian oil trade imposed by the US last Friday. Washington has authorised transactions necessary for these vessels to complete discharge by February 27
THE first US-sanctioned tanker has been tracked entering a port in Shandong, following the Chinese province’s ban on such vessels as well as Washington’s latest designations in its biggest blow yet to Russian oil trades last week.
The Panama-flagged aframax Mermar (IMO: 9231212) docked at Longkou on the northern Shandong Peninsula on January 15, having waited at anchorage for four days, according to vessel tracking data.
The ship was among the nearly 160 tankers and other entities sanctioned by the US Treasury Department’s Office of Foreign Assets Control on January 10 for involvement in trading Russian oil.
Days earlier, state-owned Shandong Port Group issued a ban, requiring its ports to stop providing services to sanctioned vessels, especially those blacklisted by Ofac.
Lloyd’s List understands Mermar, carrying about 755,000 barrels of crude from the Russian Far East port of Kozmino, was allowed to call at the port as it was within the Ofac grace period. The port group has been approached for comments.
Ofac issued a general license authorising transactions necessary for blocked vessels to offload cargo loaded before January 10, with activities permitted until 0001 hrs US Eastern Standard Time, February 27, 2025.
In addition to Mermar, eight other tankers sanctioned alongside it were anchored off Shandong’s coasts, with at least three aframax tankers appearing laden, based on their reported drafts.
They were Olia (IMO: 9268112) and Huihai Pacific (IMO: 9346732), also from Kozmino, currently off Yantai and Dongjiakou, respectively.
Another Far East Russia crude lifter from De Kastri, Viktor Titov (IMO: 9301407), was at outer anchorage off Qingdao.
Industry sources said sanctioned vessels would now be allowed to call at Shandong ports, provided they meet the US government’s general license requirements and had declared their arrivals to the port before the Ofac sanctions.
The four ships together carry close to 3m barrels of crude oil from Russia.
The industry is watching closely if these tankers can successfully discharge cargo, and more critically, where they head after offloading.
Expectations are building that these blacklisted tankers will be squeezed out of the mainstream market, boosting rates for compliant tonnage.
Meanwhile, concerns are growing that more ship-to-ship transfers will be used to sustain the sanctioned trade, while alternatives are being sought to replace the designated vessels.
According to Vortexa, the latest round of US sanctions adds 77 aframaxes and 25 suezmaxes to the Ofac list, designating much of Russia’s primary crude fleet.
Its data shows that over 85% of Russian crude trips to Shandong in 2024 used now-sanctioned tankers, and last year, Shandong took 50% of Far East oil, the Federation’s main crude source for China.
“If Shandong’s ban takes immediate effect, these vessels may no longer be able to serve their Shandong customers, creating logistical challenges even for January-delivery cargoes,” Vortexa China oil market analyst Emma Li said in a report.