US Sanctions Bite With Russia’s Crude Exports Facing Delays Offloading

(Bloomberg) —

Russia’s crude exports have yet to be curtailed by the latest US sanctions to target its oil, with flows broadly stable. But while loading cargoes onto tankers is one thing, getting them off is another — and signs are emerging that the curbs are stalling the completion of shipments.

In the Pacific, only two of nine cargoes shipped from the Sakhalin Island oil and gas projects since the sanctions have discharged. Of the other seven, four are idling near the Russian port of Nakhodka, one has been between Japan and South Korea since Jan. 17 and another arrived Monday off its Chinese destination. The last has yet to reach a location where it too is likely to idle.

With a combined fleet of only 10 specialized tankers typically used to haul these grades, it won’t be long before shipments start to falter if the ships aren’t released. So far only one of the post-sanctions cargoes has been transferred to another vessel.

Key Pacific grade ESPO is continuing to move, with unsanctioned vessels being drafted in to replace those targeted by the US last month. Only two of 27 cargoes loaded between Jan. 10 and Feb. 2 were put onto vessels sanctioned by Washington. Neither has yet attempted to offload its cargo, with one idling …