US sanctions reduced the number of buyers of Russian oil in China – Bloomberg

Chinese oil refining companies, both state-owned giants and private firms, are reducing their purchases of Russian oil following sanctions imposed by the US and its allies against key Russian producers and some of their clients. This was reported by Bloomberg, writes UNN.

DetailsAmong the affected supplies is the popular ESPO grade, whose prices have fallen sharply. According to the consulting company Rystad Energy, about 400,000 barrels per day, or up to 45% of all Russian oil imports to China, fall under the so-called “buyer’s boycott.”

State-owned companies such as Sinopec and PetroChina are temporarily refraining from purchasing Russian oil, canceling individual deliveries after sanctions against Rosneft and Lukoil. Private refiners are also cautiously avoiding deals, fearing similar penalties, as in the case of Shandong Yulong Petrochemical, which was recently blacklisted by the UK and the EU.

Restrictions on imports from Russia could strengthen the position of other suppliers, including the United States, which recently signed a trade agreement with China. However, for Moscow, the sanctions have not been a complete failure: some companies, like Yulong, have increased their purchases of Russian oil due to a lack of alternatives.

In addition, restrictions on the purchase of Russian oil by private refiners are partly due to exhausted import quotas due to tax changes that have reduced the use of other types of raw materials. Thus, sanctions and administrative restrictions are forcing Chinese companies to be more cautious about purchasing Russian oil, and Moscow is facing sales problems in one of the world’s largest markets.

RecallThe United States Department of the Treasury officially imposed sanctions against leading Russian oil companies “Rosneft”, “Lukoil” and their subsidiaries. The US called on Moscow to “immediately” agree to end the war against Ukraine.

Vladimir Putin stated that the new US sanctions are serious, but will not affect the Russian economy. He called them an attempt at pressure and an unfriendly act that does not strengthen Russian-American relations.

Donald Trump reacted to these words. He ironically noted that he was glad to hear about the dictator’s “confidence”, but noted that he would prefer to see how Russia copes with them.

UNN also reported that Hungarian Prime Minister Viktor Orbán is working on how to circumvent US sanctions against Russian oil companies “Lukoil” and “Rosneft”.