Chinese refinery sharply increases imports of Russian oil after British sanctions - Reuters
China's Shandong Yulong Petrochemical is increasing purchases of Russian oil to compensate for reduced supplies following the introduction of sanctions by the United Kingdom.
This was reported by Censor.NET with reference to Reuters.
China's newest oil refinery, with a capacity of 400,000 barrels per day, is currently operating at over 90% of its capacity. According to agency sources, Yulong plans to import 15 shipments of Russian oil in November.
Most of the deliveries will be a mixture of ESPO, but there will also be Urals and Sokol.
Import volumes
Import volumes could reach between 370,000 and 405,000 barrels per day, which would be a record monthly figure for the company. For comparison, Yulong's average consumption is around 200,000 barrels per day.
The decision to increase purchases from Russia was made a few days after the UK added the company to its sanctions list on October 16.
Reuters notes that US and EU sanctions against Russian oil trade have forced a number of Chinese state importers and Indian oil refineries to temporarily suspend purchases.
As a result, ESPO and Urals grades are seeking new buyers, particularly in Asian markets, where Yulong is currently playing an increasingly important role.
What preceded it?
On October 23, the US Treasury Department announced sanctions against major Russian oil companies Rosneft and Lukoil. The reason for the additional sanctions is Russia's lack of serious commitment to the peace process aimed at ending the war in Ukraine.
On October 24, it became known that the special representative of the Russian dictator Kirill Dmitriev had arrived in the United States for official talks.
