China's largest ports have barred entry to tankers from Moscow's "shadow fleet," according to Reuters.

Shandong Port Group has prohibited tankers under U.S. sanctions from entering its ports in the eastern Chinese province. This region hosts numerous refineries that are major importers of oil from countries under U.S. embargo.

This was reported by RBK-Ukraine citing Reuters.

The Shandong Port Group oversees significant ports along China's eastern coastline, including Qingdao, Rizhao, and Yantai, which serve as key terminals for importing sanctioned oil.

Last year, Shandong province imported approximately 1.74 million barrels of oil per day from Iran, Russia, and Venezuela, accounting for around 17% of China's total oil imports.

Last month, Washington imposed additional sanctions on companies and a "shadow fleet" engaged in Iranian oil trade. President-elect Donald Trump, who will take office on January 20, is expected to further tighten sanctions against Iran, as he did during his first administration.

Traders indicate that the ban may slow down imports to China, the world's largest oil importer.

The Shandong port notice prohibits vessels listed by the U.S. Treasury's Office of Foreign Assets Control from docking, unloading, or receiving ship services.

The ban was enacted after the sanctioned tanker Eliza II unloaded at Yantai port in early January.

According to estimates from Vortexa, which tracks tanker movements, in December, eight very large tankers with a capacity of two million barrels each primarily unloaded Iranian oil in Shandong. These vessels included Phonix, Vigor, Quinn, and Divine, all of which are under U.S. Treasury sanctions.

Shadow Fleet

According to Michel Vese-Bockmann, chief analyst at Lloyd's List Intelligence, the active shadow fleet transporting Iranian, Russian, and Venezuelan oil is estimated to consist of around 669 tankers.

She noted that out of this total, 250-300 tankers are typically involved in transporting Russian oil, excluding the largest Iranian operator NITC and the Russian tanker group Sovcomflot.

From October to December, the U.S. Treasury imposed sanctions on 35 tankers identified as part of Iran's "shadow fleet," excluding vessels operated by NITC. In early 2024, Washington imposed separate sanctions against Sovcomflot.

Sources informed Reuters this week that the Biden administration plans to impose sanctions on over 100 tankers transporting Russian oil.

The U.S. Department of Defense stated on January 7 that it has added the largest Chinese shipping company COSCO to the list of companies cooperating with the Chinese military, which may hinder charterers from using COSCO tankers and exacerbate the shortage of vessels available for rent.