Chinas State Oil Firms Suspend Russian Crude Imports Amid New U.S. Sanctions Threats

At least four state-owned oil companies in China have reportedly put a temporary halt on their seaborne purchases of Russian oil in light of new U.S. sanctions targeting major energy firms Rosneft and Lukoil, as reported by Reuters on Thursday, referencing several trade sources.

According to these sources, PetroChina, Sinopec, CNOOC, and Zhenhua Oil have decided to suspend their imports of Russian crude via sea «at least in the short term» due to concerns over the possibility of facing secondary sanctions.

The four companies did not respond to inquiries from Reuters for further information.

Additionally, there has been no public comment from either the Russian oil companies or the Chinese government regarding these reported suspensions.

Estimates from industry consultancies of crude imports by Chinese state companies vary, ranging from 250,000 barrels per day to 500,000 bpd.

In contrast to state-owned enterprises, independent Chinese refiners, often referred to as «teapots,» remain the primary purchasers of Russian oil transported by sea, making up the majority of China’s approximately 1.4 million barrels per day of maritime oil imports from Russia.

Experts indicate that these smaller refiners may briefly halt new acquisitions to evaluate risks, but many are anticipated to resume purchasing once alternative solutions become available.

Market analysts predict that both China and India—another significant buyer of Russian crude that is reportedly looking to reduce imports to adhere to U.S. sanctions—will seek alternative supplies from the Middle East, Africa, and Latin America. This shift could potentially increase prices for non-sanctioned crude in the upcoming weeks.

Meanwhile, oil transported to China through pipelines, estimated at 900,000 bpd, continues to flow as usual.

PetroChina is solely responsible for managing these pipeline deliveries, which are less susceptible to Western sanctions as they avoid seaborne shipping routes and the use of shadow fleets.