Chinese Companies Reduce Russian Oil Purchases After Washington’s Punitive Measures.

Chinese state-owned companies, including Sinopec, have canceled part of their purchases of Russian seaborne oil, following the United States’ addition of Rosneft and Lukoil to its blacklist.

According to informed sources, the companies have suspended the purchase of some spot shipments, especially ESPO crude from far eastern Russia, while assessing US restrictions and parallel measures from the European Union.

This decision has caused turmoil in the global market, as prices jumped on Thursday and Brent contracts headed for weekly gains exceeding 7%, despite trading near $66 a barrel on Friday, and remaining down by nearly 12% since the beginning of the year, amid concerns about a surplus in supplies from the OPEC+ alliance.

Sinopec, China Zhenhua Oil, and Sinochem Group declined to comment immediately. The Chinese Foreign Ministry responded that Beijing “always opposes unilateral sanctions.” US President Donald Trump intends to raise the issue of China’s purchases of Russian oil with his counterpart Xi Jinping during an upcoming meeting in South Korea next week.

Chinese state-owned companies account for more than 400,000 barrels per day of Russian seaborne shipments, nearly 40% of total seaborne oil, with pumping continuing through pipelines. Research estimates suggest that flows to China may decline, with supplies via pipelines remaining uninterrupted due to repayment arrangements that do not pass through Western banks. Shipments to India are also expected to shrink following the recent US package.

Chinese companies may move towards seeking alternatives from the Middle East and West Africa, reducing operating rates, or carrying out unscheduled maintenance, while Indian buyers are looking for alternatives to Russian crude due to high costs.

The US Treasury Department imposed the sanctions, accusing Moscow of “failing to demonstrate a serious commitment to the peace process in Ukraine.” These sanctions are the first major US sanctions on Russia since Trump’s return to the White House in January. Russian President Vladimir Putin said that this step “will have serious consequences for us, but it will not significantly affect our economic well-being,” while Moscow has about a month before the restrictions take full effect.