Chinese state-owned oil companies restricted imports of Russian oil in March, with two importers halting purchases and two others reducing volumes. This was due to the US sanctions against Russia.
Reuters reports this, citing sources.
Russian oil supplies to the largest buyers — India and China — fell sharply after the former US administration of Joe Biden imposed sanctions on January 10, 2025, against Russian producers “Gazprom Neft” and “Surgutneftegaz”, insurers, and over a hundred tankers.
In March, Chinese state-owned companies “Zhenhua Oil” and “Zhenhua Oil” suspended purchases of Russian oil that were scheduled to be loaded that month, citing concerns about dealings with companies that have been sanctioned.
Beijing is waiting for a "clear picture" on the ceasefire agreement in Ukraine. It plans to resume oil purchases if the talks lead to the easing or lifting of the US sanctions on Russian oil.
“Surgutnaftogaz” and “Gazprom Neft” account for almost a third of the seaborne shipments of Russia’s main Far Eastern crude, ESPO. Together, they export about 1.2 million metric tons to China per month.
- Despite Western sanctions aimed at limiting Moscowʼs revenues, Chinese state-owned companies are the main buyers of Russian oil. They buy almost half of Russian exports to China — about 1.3 million barrels per day — with the rest purchased by independent refiners. Russia remains Chinaʼs largest oil supplier, accounting for 20 percent of the countryʼs oil imports.
- The US has also banned payments for Russian oil through sanctioned banks. This may be a negotiating tactic to end the war in Ukraine.
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