Russian oil transport to China bypasses US sanctions

Russian oil is still reaching China despite U.S. sanctions. A Panama-flagged ship named Daban recently unloaded crude oil at the Qingdao port after transferring the oil from smaller, sanctioned tankers. This unusual shipping method has helped keep Russian oil flowing into China. The Daban is a very large crude carrier carrying about two million barrels of Russian Sokol oil. It completed its journey from Russia's Far East to Qingdao on March 13, a trip that usually takes about a week. It picked up oil from three smaller vessels that had been sanctioned by the U.S. These smaller ships transferred oil in a less common area called Nakhoda Bay. This location made the Daban's journey more noticeable to traders. The Daban is managed by a company based in Hong Kong, although contact information for the company is not available. China has opposed unilateral sanctions. An early January ban by a Chinese state-owned company restricted sanctioned tankers from entering certain ports, leading to an initial slowdown in Russian oil trade. Freight costs also soared dramatically during this period. The Daban's cargo was originally meant for Yantai port, a major oil refining hub. However, Yantai rejected the cargo. Other Chinese terminals, including private facilities, have started receiving sanctioned vessels after the new U.S. sanctions, indicating a shift in Russian oil trade practices.