Chinese state oil companies have suspended purchases of seaborne Russian oil after the United States sanctioned Moscow’s two largest oil producers, Rosneft and Lukoil, multiple sources told Reuters on Thursday.
The move coincides with India, Russia’s largest buyer of seaborne crude, preparing to sharply cut imports to comply with the new US sanctions imposed over Russia’s invasion of Ukraine on 22 October.
Together, the two countries account for the majority of Russia’s overseas oil sales, meaning the reduction is expected to significantly pressure Moscow’s energy revenues and tighten global supply.
Sources say Chinese state-owned firms will refrain from buying seaborne Russian oil at least in the short term due to sanctions concerns.
While China imports roughly 1.4 million barrels per day (bpd) of Russian oil by sea, most of it is purchased by independent refiners. Estimates suggest Chinese state firms bought between 250,000 and 500,000 bpd in the first nine months of 2025.
The sanctions primarily affect oil purchased through intermediaries rather than direct deals with Rosneft and Lukoil, the sources noted. Pipeline imports of roughly 900,000 bpd to PetroChina are likely to remain largely unaffected.
Analysts expect India and China to seek alternative suppliers, pushing up prices for Middle Eastern, African, and Latin American crude.
Before Russia's full-scale invasion of Ukraine, only 15% of China's oil imports and 3% of India's oil imports came from Russia in 2021, but by early 2025, the two countries together absorbed 85% of Russia's crude exports following Western sanctions that shifted Russian oil trade from Europe to Asia.
The Trump administration has pressured both countries to cut Russian purchases, with US Treasury Secretary Scott Bessent stating the war could end within 60-90 days if Europe imposed substantial tariffs on Russian oil buyers.
