Chinese Oil Majors Pause Russian Imports Amid US Sanctions
In a move that could disrupt global oil trade, China’s state-owned energy giants have reportedly stopped buying Russian crude following new US sanctions on Rosneft and Lukoil. According to Mint, the suspension reflects Beijing’s bid to avoid secondary sanctions while balancing ties with Moscow.
How US Sanctions Are Reshaping Oil Flows
The US Treasury’s latest sanctions bar dollar transactions with Rosneft and Lukoil, cutting them off from major financial systems. China—Russia’s top oil buyer since the Ukraine war—now faces a dilemma: maintain energy ties or risk penalties from Western financial networks.
Why Sinopec & CNPC Hit Pause
Insiders reveal that Sinopec and CNPC halted new spot purchases of Russian crude linked to sanctioned firms. Despite political alignment with Moscow, Chinese firms prioritize avoiding US-led financial risks.
Expert Insight:
“China won’t sacrifice access to global finance for Russian oil. Expect indirect deals, but direct trades are frozen for now,” said an energy analyst.
Global Ripple Effects: Discounts & Alternatives
- Russia’s Challenge: May deepen oil discounts to attract buyers like India or Türkiye.
- India’s Edge: Uses non-dollar payments (dirhams/rubles) but faces tighter US scrutiny.
- China’s Next Move: Could turn to intermediaries or barter systems to resume imports quietly.
What’s Ahead for India & Other Buyers?
India might leverage China’s pullback to negotiate cheaper Russian crude but must navigate sanction risks. The RBI already warns banks to comply with international payment rules.
Conclusion
The halt in Chinese purchases underscores how US sanctions are rewiring energy alliances. While Beijing and Moscow will likely devise workarounds, the oil market’s future hinges on how aggressively Washington enforces its measures—and how creatively others adapt.
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