China’s biggest state-owned energy companies have begun scaling back purchases of Russian crude oil following new U.S. sanctions on Moscow’s top producers, Rosneft and Lukoil, deepening volatility in the global oil market.
According to Bloomberg, firms such as Sinopec, Sinochem Group, and China Zhenhua Oil have canceled several spot cargoes of Russian seaborne crude, particularly the ESPO blend exported from Russia’s Far East. The decision comes after the United States and the European Union unveiled new restrictions aimed at tightening financial pressure on the Kremlin amid its ongoing war in Ukraine.
The sanctions package sent oil prices surging this week, with Brent crude futures climbing more than 7% as traders reacted to the prospect of disrupted Russian exports. The latest measures go beyond earlier price caps, directly targeting Russia’s largest oil producers to limit their access to global markets and financing channels.
Beijing condemned the move, saying it opposed what it called “unilateral sanctions without international legal grounds.” China has consistently criticized Washington’s use of sanctions that could indirectly affect its state firms’ energy cooperation with Russia.
U.S. President Donald Trump is expected to raise the issue of China’s Russian oil imports with President Xi Jinping during a meeting in South Korea next week. The talks are viewed as a key opportunity for the two leaders to ease trade and diplomatic tensions between their countries.
China’s state refiners collectively purchase around 400,000 barrels per day of Russian seaborne oil—accounting for up to 40% of the total shipped by sea—according to data from Kpler Ltd. However, analysts say crude deliveries through pipelines between the two nations are likely to continue, as those transactions are handled under loan agreements that bypass Western financial systems.
“Flows to China are set to fall, but pipeline deliveries should remain stable,” said Michal Meidan, director of the China Energy Research Programme at the Oxford Institute for Energy Studies.
India, another major buyer of Russian oil, is also expected to reduce imports as the new sanctions take effect. The developments highlight a growing divide in global energy trade, as Asian buyers face increasing pressure from Washington to limit purchases that could sustain Russia’s wartime revenues.
