U.S. sanctions on Russian oil companies trigger concerns in China – Bloomberg
U.S. sanctions against Russian oil companies Rosneft and Lukoil have raised concerns in China, where both state-owned and private refiners are trying to maintain supplies while avoiding potential penalties.
Bloomberg reported this, according to Censor.NET.
Roughly 20% of China’s crude imports, about 2 million barrels per day in the first nine months of 2025, come from Russia, making it a key source of feedstock for producing diesel, gasoline, and plastics.
Sanctions imposed by the U.S., the EU, and the UK require all transactions with sanctioned companies to be completed by November 21. Violations could result in fines, frozen accounts in Western banks, and loss of access to international projects and insurance companies.
"China consistently opposes unilateral sanctions that lack grounding in international law and were not authorized by the UN Security Council," said Guo Jiakun, a representative of China’s Ministry of Foreign Affairs.
Last week, the UK added Rosneft, Lukoil, and China’s Shandong Yulong Petrochemical Co. to its sanctions list, causing unease among traders. U.S. sanctions have also affected the ports of Rizhao and Dongjiakou, through which Russian and Iranian oil shipments are handled.
A key element of the trade relationship is Rosneft’s long-term contract with China National Petroleum Corp (CNPC) for ESPO crude deliveries via pipelines to refineries in the Daqing region. These plants rely heavily on Russian crude, leaving them vulnerable to any disruptions.
Analysts note that it remains unclear whether the sanctions will extend to pipeline deliveries amounting to around 800,000 barrels per day. Last year, Rosneft and Lukoil accounted for roughly a quarter of Russia’s oil exports to China, according to data from Kpler.
Background:
Earlier, U.S. Treasury Secretary Scott Bessent said Washington planned to announce a major tightening of sanctions against Russia on October 23 or 24.
Later, the U.S. Treasury announced sanctions against Russia’s major oil companies, Rosneft and Lukoil, citing Russia’s lack of genuine willingness to pursue a peace process aimed at ending the war in Ukraine.
