Chinese Oil Majors Step Back from Russian Crude amid new us sanctions. Credit: Wikimedia Commons / Benlisquare / CC BY SA 4-0
China’s leading state-owned oil companies have temporarily suspended purchases of seaborne Russian crude oil following new US sanctions on Rosneft and Lukoil, Moscow’s two largest energy firms.
The decision, confirmed by multiple industry sources, marks a significant shift in the global oil trade as both China and India—Russia’s biggest customers—scale back imports to avoid secondary sanctions.
The pullback adds fresh pressure on Russia’s energy revenues while forcing major Asian importers to secure alternative crude supplies. Analysts expect this realignment to tighten global markets and potentially lift prices for oil from the Middle East, Africa, and Latin America.
State firms pause, independent refiners hesitate
The suspension affects China’s top state oil players—PetroChina, Sinopec, CNOOC, and Zhenhua Oil—which have opted to halt new seaborne Russian oil deals, at least temporarily. Most of China’s 1.4 million barrels per day of Russian crude imports by sea are handled by smaller, independent “teapot” refiners.
According to Vortexa Analytics, state-run refiners purchased less than 250,000 barrels per day of Russian crude in the first nine months of 2025, while Energy Aspects placed the figure closer to 500,000 barrels per day.
Last week, Unipec, the trading arm of Sinopec, ceased Russian oil purchases after the U.K. added Rosneft, Lukoil, and several shipping entities to its sanctions list. Traders say most Russian oil destined for China is sold through intermediaries, limiting direct exposure but not eliminating risk.
Market impact and price adjustments
The market reaction was immediate. Offers for November-loading ESPO crude slipped to just $1 per barrel above ICE Brent, down from $1.70 earlier in October.
Independent Chinese refiners are expected to pause new deals to assess the implications of sanctions but remain likely to resume purchases if routes and payments can be structured safely.
Pipeline imports—roughly 900,000 barrels per day delivered directly to PetroChina—are expected to continue unaffected, as these flows are less exposed to maritime sanctions.
Global repercussions
As both China and India diversify away from sanctioned Russian barrels, competition for non-restricted crude is expected to intensify. This could drive up demand—and prices—for oil from Saudi Arabia, Iraq, Angola, and Brazil, reshaping trade dynamics across the global energy market.
The US sanctions, aimed at curbing revenue funding Russia’s war in Ukraine, are now reverberating through the world’s largest importers, signaling a new phase of uncertainty in international oil supply chains.