Tanker New to Russia Oil Trade Docks at Russian Port Hit by Sanctions

A picture of the Ling Hong in Rotterdam, Netherlands / Photo: Hannes van Rijn.

‍As traders work to reestablish supply routes disrupted following recent U.S. sanctions, a tanker new to Russia’s oil trade docked at the Kozmino port over the weekend.

The Ling Hong (IMO: 9408542), a 17-year-old Aframax previously named Suvretta, berthed at Kozmino Port on Saturday, according to ship-tracking data from ShipAtlas by Maritime Optima. The vessel, which is not subject to sanctions, loaded approximately 670,000 barrels of ESPO crude.

According to ShipAtlas, Ling Hong is now en route to deliver her cargo to Dongying port in China’s Shandong province on February 7.

Sanctions imposed by the outgoing Biden administration targeted around 70% of the tankers servicing Kozmino, which is raising concerns over the continuity of ESPO crude shipments to China.

In response, traders have introduced alternative pricing models, shipping costs have surged, and vessels that previously transported Russian barrels from western ports have been reassigned to the country’s eastern terminals.

Another tanker, the Bhilva, is currently ballasting off Kozmino and has indicated it will dock at the port today, based on ship-tracking data from ShipIntel. The vessel, capable of carrying 740,000 barrels, made an abrupt U-turn in the Indian Ocean three weeks ago before setting its current course.

Under the ESPO trading model, sellers manage all logistics until the oil reaches buyers. Chinese refiners remain the primary consumers. These shipments can reach their destinations within days.

Meanwhile, another tanker new to Russia’s oil trade has started transporting barrels from one of the country’s western ports. The Breeze III, a 20-year-old Aframax, docked at Ust'-Luga on the Baltic Sea for the first time last month, shortly after the latest round of sanctions took effect.

The vessel, which is not on any sanctions lists, loaded over 660,000 barrels before transiting through the Mediterranean and the Suez Canal. It is now navigating the Red Sea near Ain Sukhna, Egypt, with an expected arrival in Saudi Arabia later this week.

According to RBC Capital Markets analysts including Brian Leisen,

"The logistical pieces are moving into place to ensure that Russian barrels can continue to flow without passing sanctions risk onto customers."