Chinese refiners start shunning Russian oil after US sanctions, Bloomberg reports
Several Chinese refiners have begun avoiding purchases of Russian crude oil after the U.S. and others imposed major sanctions on Russian producers, Bloomberg reported on Nov. 2, citing traders.
The Trump administration imposed sanctions against Russian oil giants Lukoil and Rosneft on Oct. 22, aiming to pressure Moscow into accepting a ceasefire in Ukraine.
The measures freeze the companies' U.S. assets and pave the way for secondary sanctions against foreign institutions that handle transactions with those on the blacklist.
After the sanctions, state-owned Chinese refiners, such as Sinopec and PetroChina Co., have canceled some Russian cargos, and smaller private refiners are also holding off on purchases, according to Bloomberg.
The situation affects approximately 400,000 barrels per day, representing around 45% of China's oil imports from Russia, the news agency reported, citing the Rystad Energy consultancy.
China has become one of the leading buyers of Russian oil after the outbreak of the full-scale war in Ukraine, taking advantage of steep discounts as Moscow sought new markets.
While claiming neutrality in the war, Beijing is seen as crucial in keeping Russia's economy afloat amid the invasion.
Other buyers have reportedly begun shunning Russian crude following the imposition of fresh Western sanctions. Reuters reported on Nov. 2 that Turkey's largest oil refineries are scaling back purchases of Russian oil and turning to alternative suppliers.
India, another major importer of Russian oil alongside China and Turkey, has been seeking ways to circumvent Western sanctions. Indian Oil Corp. (IOC), the country's largest refiner, purchased five batches of Russian oil for delivery in December from companies not subject to sanctions, Reuters reported.
