Bloomberg: Chinese Refiners Scale Back Russian Oil Purchases Following New U.S. Sanctions

Several Chinese refiners have started reducing or canceling purchases of Russian crude oil after new U.S. sanctions targeted major Russian producers, Orda.kz reports, citing Bloomberg.

The media reported this on Nov. 2, citing traders.

On Oct. 22, the U.S. administration imposed sanctions on Russian oil giants Lukoil and Rosneft, aiming to pressure Moscow into agreeing to a ceasefire in Ukraine. The measures freeze the companies’ U.S. assets and open the door to secondary sanctions against foreign entities that continue to conduct transactions with them.

Following the restrictions, state-owned firms such as Sinopec and PetroChina have reportedly canceled some Russian shipments, while smaller private refiners are also refraining from new purchases, according to Bloomberg.

China has become one of Russia’s key oil buyers since the start of the full-scale invasion of Ukraine, benefiting from steep discounts as Moscow sought new markets. Although Beijing maintains a position of neutrality, it remains a vital economic partner sustaining Russia’s oil revenues amid the war.

Other countries are also curbing Russian imports. Reuters reported that Türkiye’s largest refineries are cutting back on Russian crude and turning to alternative suppliers.

Meanwhile, India, another major buyer, is exploring ways to navigate Western sanctions. The country’s biggest refiner, Indian Oil Corp., recently purchased five shipments of Russian oil for December delivery from companies not affected by the restrictions, Reuters noted.

Despite the restrictions, a U.S. intelligence assessment claims that Russian President Vladimir Putin is more determined than ever to continue the war in Ukraine, writes NBC News.