Bloomberg’s report on methods to bypass Iran’s oil sanctions
Private terminals in China have received shipments from tankers sanctioned by the United States, indicating that the region, which hosts the largest buyers of Iranian and Russian crude oil, has found ways to circumvent the reluctance of major port operators.
After the state-owned Shandong Port Group sold at least one terminal to a private entity, Dongying in the eastern province of Shandong became a key port for receiving these shipments. This information was disclosed by traders familiar with the matter. According to these sources, the tanker Si He, which was sanctioned on January 10th, unloaded over 744,000 barrels of Russian ESPO crude oil at Dongying port last week. This was confirmed by traders and the commodity tracking platform Kpler.
Other hubs have also emerged for these types of shipments, including an independent dock at Yangshan, located south of Shanghai, and a terminal in the southern port of Huizhou, which received an Iranian oil shipment last month.
Since Shandong Port Group asked its operators last month to refrain from accepting sanctioned tankers, private terminals and docks have gained more importance. This decision was made in response to increased scrutiny from Washington.
The Biden administration’s intensified sanctions in its final days have reinforced this trend. By relying on these smaller docks, China’s independent refineries can continue to purchase cheap crude oil while protecting major logistics companies and state-owned refineries that manage cargo and container shipments.
According to Bloomberg’s calculations based on official customs data, Russian and Iranian crude oil purchases made up a quarter of China’s total imports in 2024. However, stricter Washington restrictions since late last year have complicated this trade and forced buyers to be creative in bypassing sanctions.
The continued acceptance of sanctioned tankers reflects the pressure on China’s private refineries and Beijing’s willingness to overlook sanctions.
