Chinese state-owned oil companies, including Sinopec and Zhenhua Oil, have paused purchases of Russian crude for March-loading cargoes due to compliance concerns following U.S. sanctions targeting Gazprom Neft and Surgutneftegaz, according to trade sources. PetroChina and CNOOC have also reduced seaborne imports, opting for caution as they await clarity on potential U.S.-Russia negotiations to end the Ukraine war.
The sanctions, imposed by the Biden administration in January, disrupted nearly a third of Russia’s Far East ESPO blend exports to China (1.2 million metric tons monthly, ~300,000 bpd). While independent refiners have absorbed some supply—keeping ESPO prices at a
2.50
–
2.50–3/barrel premium to Brent—the pullback by state firms has pressured Moscow’s revenue and highlighted vulnerabilities in Russia’s energy-dependent economy.
China, which opposes unilateral sanctions, remains Russia’s largest oil buyer, importing 20% of its crude from Moscow. PetroChina continues pipeline imports of 800,000–900,000 bpd under long-term contracts, while Sinopec shifts to alternatives from West Africa, the Middle East, and Brazil. Industry sources note state firms may resume purchases if sanctions ease post-ceasefire talks.