Summary Companies US sanctions hit Moscow’s two largest oil companies India poised to sharply cut Russian oil imports Russia faces demand drop from two biggest customers SINGAPORE, Oct 23 (Reuters) – Chinese state oil majors have suspended purchases of seaborne Russian oil after the United States imposed sanctions on Rosneft and Lukoil, Moscow’s two biggest oil companies, multiple trade sources said on Thursday.
Chinese national oil companies PetroChina (601857.SS), opens new tab, Sinopec, CNOOC and Zhenhua Oil will refrain from dealing in seaborne Russian oil at least in the short-term due to concern over sanctions, the sources said.
Vortexa Analytics pegged Russian oil purchases by Chinese state firms at under 250,000 bpd for the first nine months of 2025, while consultancy Energy Aspects put it at 500,000 bpd.
Rosneft and Lukoil sell most of their oil to China through intermediaries instead of directly dealing with buyers, traders said.
Independent refiners, meanwhile, are likely to pause buying to assess the impact of sanctions but would still look to continue Russian oil purchases, several traders said.
An overview.
Businesses.
Moscow’s two biggest oil companies were subject to US sanctions.
India poised to sharply cut Russian oil imports.
Russia’s two largest customers are reducing their demand.
SINGAPORE, October 23 (Reuters) – Following U.S. sanctions on Moscow’s two largest oil firms, Rosneft and Lukoil, Chinese state oil majors have halted purchases of seaborne Russian oil, according to several trade sources on Thursday.
The action is taken in response to the U.S. sanctions, which require refiners in India, the biggest purchaser of Russian oil transported by sea, to drastically reduce their imports of crude from Moscow. A. sanctions brought on by the invasion of Ukraine by the Kremlin.
Moscow’s oil revenues will be strained if the two biggest consumers of oil in Russia drastically reduce their demand, forcing the top importers in the world to look for other sources and driving up prices globally.
PetroChina (601857) is a national oil company in China. SS), opens a new tab, Sinopec, CNOOC, and Zhenhua Oil will not deal in Russian oil that is transported by sea, at least not for the foreseeable future, according to the sources.
Requests for comment were not immediately answered by the four businesses.
Although estimates of purchases by state refiners vary greatly, independent refiners, including small operators known as teapots, purchase the majority of China’s daily imports of approximately 11.4 million barrels of Russian oil by sea.
For the first nine months of 2025, Vortexa Analytics estimated that Chinese state companies would buy less than 250,000 barrels of Russian oil per day, while Energy Aspects, a consultancy, estimated that the amount would be 500,000 barrels per day.
Sinopec’s trading division, Unipec (600028). SS), opens a new tab, halted Russian oil purchases last week following Britain’s designation of Chinese entities, including a significant Chinese refiner, as well as shadow fleet ships and Rosneft and Lukoil, according to two trade sources.
According to traders, Rosneft and Lukoil sell the majority of their oil to China via middlemen rather than directly to consumers.
According to a number of traders, independent refiners will probably halt their purchases in order to evaluate the effects of the sanctions, but they will still try to continue purchasing Russian oil.
Offers for November-loading ESPO crude dropped to a $1 per barrel premium to ICE Brent prior to Wednesday’s sanctions announcement, from earlier trades in early October at a $1.70 premium.
By pipeline, China also imports about 900,000 barrels of Russian oil per day, all of which is sent to PetroChina, which a number of traders stated would probably not be significantly impacted by sanctions.
Prices for non-sanctioned oil from the Middle East, Africa, and Latin America are predicted to rise as China and India look for alternative sources, according to traders.
In Singapore, Chen Aizhu, Florence Tan, Siyi Liu, and Trixie Yap reported; Andrew Heavens and Tony Munroe edited the story.
