China’s Shandong Port Group Reportedly Bans U.S.-Sanctioned Vessels

In a recent development, China’s foreign ministry stated that it was not informed about Shandong Port Group’s decision to prohibit U.S.-sanctioned vessels from operating in its network of east coast harbors. The group manages several key terminals in the province of Shandong, which serves as the primary entry point for Iranian, Russian, and Venezuelan oil shipments into China. These embargoed oil flows accounted for nearly one-fifth of China’s total oil imports last year.

If this ban is implemented, industry experts believe that it could lead to higher shipping costs for independent refiners in Shandong, who are the main purchasers of discounted sanctioned crude oil from these three countries. Furthermore, it could potentially disrupt the flow of oil imports into China.

A spokesperson from the Chinese foreign ministry expressed unawareness of the reported decision, which was initially covered by Reuters. The spokesperson reiterated China’s firm stance against U.S. sanctions, emphasizing the country’s opposition to what they described as the United States’ disregard for international law, imposition of illegal unilateral sanctions, and exercise of long-arm jurisdiction without authorization from the U.N. Security Council.

This latest development underscores the ongoing tensions between the United States and China, particularly in the realm of trade and sanctions. The implications of Shandong Port Group’s decision could have significant repercussions on the global oil market, affecting not only oil prices but also trade dynamics between the involved countries.

As the situation continues to evolve, stakeholders in the energy sector will be closely monitoring any further developments and their potential impact on the industry.

(Reuters – Reporting by Liz Lee and Lewis Jackson in Beijing; Editing by Alexander Smith)