Chinese state oil majors have suspended purchases of seaborne Russian crude following new U.S. sanctions targeting Rosneft and Lukoil, Moscow's two largest producers, multiple trade sources have confirmed according to Reuters.
PetroChina, Sinopec, CNOOC and Zhenhua Oil have refrained from seaborne Russian oil purchases at least in the short term due to secondary sanctions concerns, according to industry sources. The suspension coincides with Indian refiners preparing sharp cutbacks in Russian crude imports.
The move is another significant blow to Russia's war economy, as China and India together account for the majority of Russia's seaborne oil exports.
Coordinated pressure
Just yesterday the United States and EU initiated a two-pronged sanctions effort as conomic coersion to end the war in Ukraine.
READ MORE: West slaps crippling sanctions on Russian oil trade
"Now is the time to stop the killing and for an immediate ceasefire," U.S. Treasury Secretary Scott Bessent said.
"Given President Putin's refusal to end this senseless war, Treasury is sanctioning Russia's two largest oil companies that fund the Kremlin's war machine."
While China imports roughly 1.4 million barrels of Russian oil daily by sea, independent refiners handle most volumes.
Estimates suggest state firms purchased between 250,000 and 500,000 barrels per day in the first nine months of 2025.
The simultaneous withdrawal of Russia's two largest customers will strain Moscow's oil revenues whilst forcing global importers to seek alternatives, likely pushing up prices for non-sanctioned crude in coming weeks.
