China state buyers step back from Russian oil after sanctions
Chinese state-owned companies including Sinopec cancelled some purchases of seaborne Russian crude after the US blacklisted Rosneft PJSC and Lukoil PJSC, adding to signs of disruption in the oil market.
The Chinese majors have begun to assess the impact of the US curbs, as well as similar moves by the European Union, according to people with knowledge of the situation, asking not to be identified discussing sensitive issues. The companies have paused purchases of some spot cargoes, mostly ESPO, a grade that ships from Russia’s Far East, they said.
The global oil market has been jolted this week by the wave of US sanctions, which have targeted Russia’s two largest producers and are intended to raise the pressure against Moscow to end the war in Ukraine. Prices spiked on Thursday after the Trump administration’s package was announced, and Brent futures are on course for a weekly gain of more than 7%.
China Petroleum & Chemical Corp., as Sinopec is formally known, as well as China Zhenhua Oil Co. and Sinochem Group didn’t immediately reply to requests for comment.
In addition to China, Russian crude flows to India, another key buyer, are expected to plunge following the US penalties. The sanctions mark a radical shift in Western policy, which previously sought to limit revenue for the Kremlin through a price-cap mechanism designed to prevent a major supply disruption and spike in prices.
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Published on October 24, 2025
