Chinese refineries double purchases of Russian oil after India retreats

Chinese refineries have significantly increased purchases of Russian Urals crude oil after India sharply reduced imports amid rising US tariffs.

According to data from Kpler, quoted by Russian media, deliveries of Urals to China reached around 75,000 barrels per day in August, nearly double the average level since the beginning of the year, which stood at about 40,000 barrels. In contrast, exports to India dropped to 400,000 barrels per day, compared with an average of 1.18 million.

“Chinese refineries are currently in a more favourable position than Indian refineries to continue purchasing Russian oil,” said Jianan Sun, an analyst at Energy Aspects Ltd. He noted that Urals crude, shipped from Baltic and Black Sea ports, competes effectively with grades supplied from the Middle East.

The shift comes after US President Donald Trump, in early August, announced an additional 25% tariff on Indian goods exported to the United States in response to New Delhi’s purchases of Russian oil. This move brought the overall tariff rate to 50%.

The White House argued that India’s purchases of Russian crude were effectively financing the war in Ukraine. Indian officials rejected the criticism as unfounded, pointing out that Western nations themselves continue to import Russian products.

The US has not imposed similar restrictions on China, with which it remains engaged in trade talks. Last week, Trump stated that he would hold off on raising tariffs on Chinese goods for now, citing progress following his meeting with Russian President Vladimir Putin in Alaska. For its part, the Kremlin condemned Washington’s attempts to pressure countries into halting imports of Russian oil, calling such demands illegal.

According to assessments by Kpler and Energy Aspects, Chinese refiners secured between 10 and 15 batches of Urals crude for delivery in October and November, surpassing typical purchase volumes.

Earlier in August, Bloomberg reported that Chinese buyers were offered futures for October delivery at a discount of $1.5 per barrel compared to Brent, which was trading at $66.2 on the ICE exchange on the morning of August 19.

By Tamilla Hasanova