Russia is now China’s biggest oil supplier after Beijing increased imports by 55%
Russia is now China’s largest oil supplier after Beijing increased imports by 55% to take advantage of low prices in the wake of Western sanctions
- Russia’s oil exports to China amounted to almost 8.42 million euros in May
- Russia has ousted Saudi Arabia as China’s largest oil supplier in recent months
- Discounts of up to 30% have undermined Western sanctions against Ukraine
Russia has become China’s largest oil supplier after slashing its prices amid Western sanctions over the war in Ukraine.
It supplanted Saudi Arabia as China’s largest supplier after rising 55% in the past year, allowing the Chinese state to take advantage of the low prices caused by Western countries refusing to buy oil from Russia.
Russian oil exports to China totaled nearly 8.42 million tons in May, driving out Saudi Arabia, which exported 7.82 million tons to China.
In recent months, Chinese state giants Sinopec and Zhenhua Oil have increased their purchases of Russian crude, refined and resold the oil.
Rebates of up to 30% have undermined Western sanctions and raised fears that Russia will continue to find funding for its war in Ukraine.
Last week, the Center for Research on Energy and Clean Air think tank said Russia earned nearly $100 billion in revenue from fossil fuel exports in the first 100 days after the invasion of Ukraine.
The European Union accounted for 61% of these imports, worth about $59 billion.
Oil prices are up more than 60% in the past 12 months, to over $112 a barrel for international benchmark crude as of Monday.
Russia is now China’s largest oil supplier after winning big discounts thanks to Western sanctions over the war in Ukraine. Just weeks before Putin ordered his troops into Ukraine, Moscow and Beijing agreed to a ‘no borders’ partnership when the two leaders met
China wavered between openly supporting Russian aggression and denouncing the war, despite the two countries tightening ties in February prior to the invasion.
But the Chinese Communist Party has been increasingly emboldened as the war continues, losing its fear of Western sanctions introduced in retaliation for Vladimir Putin’s actions.
On June 15, China vowed to back Vladimir Putin over Russia’s “sovereignty and security,” with the two countries tightening economic ties — prompting Washington to warn Beijing it was at risk “on the wrong side of history.” to end up.
President Xi Jinping spoke to his Russian counterpart in a phone call, in which he declined to condemn Moscow’s massive military attack on Ukraine.
Beijing has been accused of providing diplomatic cover for Moscow by inflating Western sanctions and arms sales to Kiev as it escalates tensions in its own region with mounting threats to Taiwan.
It was the second report between the two leaders since Putin invaded Ukraine on February 24.
The pair last met in February when Putin visited Beijing for the opening ceremony of the 2022 Winter Olympics.
Just weeks before Putin ordered his troops into Ukraine, Moscow and Beijing agreed to a “no borders” partnership when the two leaders met.
In March, it was reported that senior Chinese officials had asked Putin to invade Ukraine until after the 2022 Winter Olympics.
Russia has supplanted Saudi Arabia as China’s largest supplier after rising 55% in the past year. Pictured is Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman
The photo shows a wellhead and oil rig in Russia. Discounts of up to 30% have undermined Western sanctions and raised fears that Russia will continue to find funding for its war
The West has passed unprecedented sanctions against Russia in retaliation for its invasion of Ukraine, and Moscow believes Europe and the United States have caused a global economic slowdown.
Moscow is also looking for new markets and suppliers to replace the large foreign companies that left Russia after the invasion.
The European Union and the United States have warned that any support from Beijing for the war in Russia, or aid to Moscow to evade Western sanctions, would damage ties.
China and India are two major economies that have not participated in retaliatory measures against Moscow, with Putin counting on his country’s relations with the pair to rescue him from the economic fallout.
Beijing is Moscow’s largest trading partner, with trade volumes reaching $147 billion last year, according to Chinese customs data.