Chinese oil refiners have begun to avoid Russian supplies after the US and other countries imposed sanctions on major Russian oil producers and some of their clients.

Source: Bloomberg, as reported by European Pravda

Details: State-owned giants such as Sinopec and PetroChina have withdrawn from recent Russian shipments, cancelling some cargoes following US sanctions on Rosneft and Lukoil last month, traders said.

Smaller private refineries are also taking a pause, fearing sanctions like those imposed on Shandong Yulong Petrochemical Co., which was recently blacklisted by the UK and the EU.

Russia's ESPO crude blend has been particularly affected, with prices plunging. According to Rystad Energy AS, about 400,000 barrels per day – up to 45% of China's imports of Russian oil – have been impacted by this buyer strike.

Russia became China's largest foreign oil supplier partly due to steep discounts triggered by sanctions following the full-scale invasion of Ukraine.

Now, the US and its allies are stepping up pressure not only on Russian producers but also on their buyers, aiming to curb the Kremlin's oil revenues and thereby limit its ability to finance the war. China is the world's largest crude oil importer, so any decline in Russian deliveries is expected to benefit other suppliers.

Among the potential beneficiaries is the US, which last week reached a significant trade truce with Beijing during a meeting between US President Donald Trump and Chinese leader Xi Jinping.

Background: Major oil refineries in Türkiye are also shifting away from Russian oil, increasing purchases of non-Russian crude in response to fresh Western sanctions against the Kremlin.

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