China’s Shandong Port Group, which oversees major oil-importing ports in the Shandong province, has decided to ban tankers that are subject to US sanctions from entering its facilities. This move could significantly impact oil imports from Russia, Venezuela, and Iran, which combined account for about 17% of China’s total oil imports.
Shandong Port Group, which operates key ports along China’s eastern coast—including Qingdao, Zizhao, and Yantai—plays a vital role in oil imports. These ports are essential entry points for crude oil shipments from countries like Russia, Venezuela, and Iran, all of which are facing various US sanctions. Last year, the Shandong province accounted for nearly a fifth of China’s total oil imports.
The port’s decision could result in higher shipping costs for independent refineries in Shandong, which are among the largest importers of oil from these sanctioned countries. Such a ban could also disrupt the flow of oil to China, the world’s largest oil importer, potentially slowing imports and affecting global oil markets.
Despite these concerns, Shandong Port Group has stated that the ban will likely have a limited effect on the independent refiners. Most of the sanctioned oil, they claim, is carried on tankers that do not fall under US sanctions, which may minimize the ban’s broader impact.
The ban comes amidst growing international pressure, particularly from the United States, to reduce the flow of oil from sanctioned countries like Russia. US President Joe Biden’s administration has signaled further actions to target Russia’s oil revenues, including sanctions aimed at tankers transporting Russian oil.
| Location | Affected Ports | Impacted Countries | Impacted Oil Imports |
|---|---|---|---|
| Shandong Province | Qingdao, Zizhao, Yantai | Russia, Venezuela, Iran | 17% of China’s total imports |
