Russia Shifts to Hong Kong Tankers for Seaborne Crude Sales
Russia turned to non-G7 tankers for seaborne crude sales to foreign buyers in August, especially those operated by Hong Kong companies, as Greek tanker firms steered clear of the Black Sea amid an escalation in maritime attacks. According to S&P Global Commodities at Sea and Maritime Intelligence Risk Suite data, tankers flagged, owned, and operated by companies not based in G7 countries and their allies loaded 70.7% of Russia’s crude exports of 3.8 million barrels per day last month.
The share was up from 63.8% in July, reversing a downward trend in recent months, and the highest in five months. Hong Kong tanker operators were responsible for lifting 32 million barrels in August, exceeding their peers in Mainland China and all other countries, the data showed. The monthly reading was much higher than 18 million barrels in July and the highest since at least November 2022, the month before the G7 price cap came into effect.
Hong Kong’s Attractive Jurisdiction
Hong Kong‘s incorporation system allows beneficial owners and sources of funding to be obscured behind layers of nominees, secretarial firms, and interchangeable shell entities. This opaque ownership structure makes it an attractive jurisdiction for shipowners seeking to stay ahead of sanctions authorities. As think tank China Strategic Risks Institute noted in a research note earlier this year, “Hong Kong’s incorporation system allows beneficial owners and sources of funding to be obscured behind layers of nominees, secretarial firms, and interchangeable shell entities.”
Greek Withdrawal from Black Sea
The bigger role of tanker operators based in the Chinese special administrative region came as Ukraine intensified drone attacks on ships they deemed as engaged in Russian Black Sea trades in recent months. Several linked to Greek interests were damaged near Novorossiysk, including Kyklades Maritime’s Suezmax Nissos Sifnos and Dynacom’s Marathi, which were targeted when operating at or near the Caspian Pipeline Consortium terminal, mainly exporting Kazakh crude.
Shipments by tanker operators in Greece, the EU’s top shipowning nation, fell to a five-month low of 13.6 million barrels last month from 26.4 million barrels in August, according to CAS/MIRS. Their Black Sea liftings dropped to 3 million barrels from 11.6 million barrels. The withdrawal coincided with a recovery in Russian crude prices, which limited compliant trade opportunities.
Price Cap Regime
The monthly average price for Urals, Russia‘s flagship crude grade, rose to $64.242 per barrel in August from $52.927 per barrel in July, according to Platts assessments. It surged further to $86.05 per barrel on September 9. Based on the G7 price cap regime, which has fragmented following US President Donald Trump’s return to the White House in 2025, the US would let tanker operators ship Russian crude when the price is below $60 per barrel, Japan set the threshold at $47.6 per barrel, and the EU, UK, and Canada at $47.6 per barrel.
Original Article: Russia shifts to Hong Kong tankers as Greek operators exit Black Sea — Cyprusshippingnews