Chinese state oil majors suspend Russian crude purchases following US sanctions

China’s state-owned oil giants have suspended purchases of seaborne Russian crude after the United States imposed sanctions on Rosneft and Lukoil, Moscow’s two largest oil companies, multiple trade sources told Reuters.

The move comes as refiners in India — the biggest buyer of seaborne Russian oil — prepare to sharply reduce their imports from Moscow in order to comply with US measures targeting Russia over its war in Ukraine.

A simultaneous drop in oil demand from Russia’s two largest customers is expected to put significant pressure on Moscow’s export revenues, forcing major importers to seek alternative crude supplies and likely pushing up global oil prices.

According to several trade sources, China’s national oil companies — PetroChina, Sinopec, CNOOC, and Zhenhua Oil — have decided to refrain from purchasing seaborne Russian crude, at least temporarily, due to concerns about potential exposure to sanctions. The four firms did not immediately respond to requests for comment.

While China imports around 1.4 million barrels per day (bpd) of Russian oil by sea, the majority of these shipments are handled by independent refiners, including smaller operators known as “teapots.” Estimates of purchases by China’s state-owned refiners vary widely.

Data from Vortexa Analytics shows that Chinese state firms bought fewer than 250,000 bpd of Russian oil during the first nine months of 2025, while consultancy Energy Aspects places that figure closer to 500,000 bpd.

Unipec, the trading arm of Sinopec, halted purchases of Russian crude last week after the United Kingdom sanctioned Rosneft, Lukoil, several “shadow fleet” vessels, and Chinese entities including a major refiner, two trade sources said.

Traders added that Rosneft and Lukoil typically sell the bulk of their oil to China through intermediaries rather than directly to buyers. Independent Chinese refiners are also expected to pause purchases temporarily to assess the impact of the new sanctions, though many are likely to resume buying once the situation becomes clearer, several market participants noted.

Before the latest sanctions were announced on October 22, offers for November-loading ESPO crude had already fallen to a premium of about $1 per barrel to ICE Brent, down from roughly $1.70 earlier in October, according to trade data.

In addition to seaborne imports, China receives around 900,000 bpd of Russian oil via pipeline, all of which is supplied to PetroChina. Several traders said these pipeline deliveries are expected to remain largely unaffected by the sanctions.

With both India and China expected to diversify their supply sources, traders anticipate increased demand — and higher prices — for non-sanctioned crude from producers in the Middle East, Africa, and Latin America.

By Vafa Guliyeva