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Chinese state oil companies reportedly suspended purchases of Russian oil after the US imposed sanctions on Rosneft and Lukoil, Moscow’s two biggest oil companies.
The US sanctioned two key Russian oil producers on Wednesday. (Representational image: AFP)
Major Chinese state oil companies have suspended purchases of Russian oil after the United States imposed sanctions on Rosneft and Lukoil, Moscow’s two biggest oil companies, multiple sources told Reuters, signalling Washington’s tough stance on Russian crude exports to pressure the country into halting its war against Ukraine.
Chinese national oil companies PetroChina, Sinopec, CNOOC and Zhenhua have decided to refrain from dealing in seaborne Russian oil at least in the short-term due to concerns over US sanctions, according to the sources.
Unipec, the trading arm of Sinopec, had stopped purchasing Russian oil last week after the UK sanctioned Rosneft and Lukoil, as well as shadow fleet ships and Chinese entities – including a major Chinese refiner – two sources informed Reuters.
China imports roughly 1.4 million barrels of Russian oil per day by sea, most of it being bought by independent refiners. Rosneft and Lukoil sell most of their oil to China through intermediaries instead of directly dealing with buyers, as per traders. After the sanctions, independent traders are likely to pause buying to assess the impact of the sanctions but will still look to continue Russian imports, they informed.
This came after Reuters reported that India was poised to sharply reduce imports of Russian oil to comply with the new US sanctions on Russian producers. A sharp drop in oil demand from Russia’s two largest customers is expected to put a strain on Moscow’s oil revenues and force importers to seek alternative supplies, driving up prices.
Traders said India and China are expected to turn to other supplies, pushing up prices for non-sanctioned oil from the Middle East, Africa and Latin America. India faces 50% tariffs on its exports to the US, with 25% of those in retaliation for Russian oil purchases.
US sanctions on Rosneft and Lukoil are the first of US President Donald Trump’s second term targeting Russia over its actions in Ukraine, amid his growing frustration with Russian President Vladimir Putin. The US Treasury has given companies until November 21 to wind down their transactions with the Russian oil producers, according to a release on the sanctions on Wednesday.
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international…Read More
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in international… Read More
October 23, 2025, 19:48 IST
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