US sanctions have left about 10 million barrels of Russian crude oil stranded off the coast of South Korea, traders or shipping data. Due to Western sanctions, the 10 million barrels—of the Sokol variety—from Sakhalin-1. Which are being transported by 14 tankers, are still unsold. That is roughly 45 days’ worth of Sakhalin-1 output at a rate of 220,000 bpd on average.
Following US sanctions against several companies and vessels transporting Sokol grade. A number of ships, including three VLCCs, carrying Russian crude oil, have been stranded for weeks near the port of Yosu in South Korea.
Shree Metal Prices sources or shipping statistics provided by Kpler and LSEG indicate that the 3.2 million barrels carried by the VLCCs are functioning as floating storage.
Indian Oil Corp. was the intended recipient of at least a few of the Sokol crude oil. Due to payment issues that have delayed delivery. Indian Oil Corp. has had to look elsewhere for crude, primarily in its own storing or the Middle East.
Effectiveness of U.S. Sanctions on Russian Crude
More than a year ago, the US start imposing sanctions or price caps on Russian crude oil that was transported by water. The goal was not to stop the oil from flowing. But rather to limit Russia’s ability to use the money from the sale of crude oil to finance its military activities in Ukraine.
Although some have claimed that the Biden Administration’s sanctions and the Group of Seven price cap have been largely ineffective, the administration has maintained that they have been successful.
The Kyiv School of Economics projected in December that oil sales in Moscow would generate $178 billion in revenue in 2023, with an expected increase to this amount in 2024. Russia has lost $37 billion in export revenue as a result of the import ban and price cap.
According to the Centre for Research on Energy and Clean Air. Last December, CREA analysts stated, “The price cap has had an effect but has failed to live up to its potential.”