China opposes new US sanctions on Russia's two largest oil companies: ‘No basis in international law’

China on Thursday said it “opposes” the recent sanctions imposed by the United States on Russia’s two largest oil companies, describing the measures as having “no basis in international law.”

The sanctions were announced by President Donald Trump on Wednesday after plans for a new summit with Russian President Vladimir Putin fell through. Trump complained that talks with Putin “don’t go anywhere.”

China, a major trading partner of Russia, has maintained a neutral stance on the conflict and has avoided condemning Moscow’s full-scale invasion of Ukraine in 2022.

Asked about the new US sanctions at a daily press conference in Beijing, foreign ministry spokesman Guo Jiakun said "China consistently opposes unilateral sanctions that have no basis in international law and are not authorised by the United Nations Security Council".

In response to another question about Trump's statement that Chinese President Xi Jinping could have a "big influence" on Putin in efforts to end the war, Guo said that "dialogue and negotiations are the only feasible way out of the Ukraine crisis".

At the same press conference, Guo criticised sanctions on Russia agreed Wednesday by the European Union whose targets included Chinese companies, saying Beijing was "strongly dissatisfied".

"China is neither the creator of the Ukraine crisis nor a party to it," he said.

"The European side is in no position to make irresponsible remarks about the normal exchanges and cooperation between Chinese and Russian enterprises."

Guo urged Brussels to "stop making an issue out of China", vowing that Beijing "will take all necessary measures to safeguard its legitimate rights and interests".

US hits top Russian oil companies with sanctions

Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft. The move came after EU countries on Wednesday approved a 19th package of sanctions on Moscow for its war against Ukraine that included a ban on Russian liquefied natural gas imports. Trump's measures also followed Britain's sanctioning last week of Rosneft and Lukoil.

The US Treasury Department said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire in Russia's war in Ukraine, which began in February 2022.

"Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine," Treasury Secretary Scott Bessent said in a statement. "We encourage our allies to join us in and adhere to these sanctions."

Oil prices jumped more than $2 a barrel after the U.S. measures, with Brent crude futures extending gains after settlement, rising to about $64.

The sanctions are a major policy shift for Trump, who had not put sanctions on Russia over the war and instead relied on trade measures. Trump earlier this year imposed additional 25% tariffs on goods from India in retaliation for its purchasing discounted Russian oil.

The US has not imposed the tariffs on China, another major buyer of Russian oil. A $60 price cap on Russian oil imposed by Western countries after Russia's invasion has shifted Russia's oil customers in recent years from Europe to Asia.

Trump told reporters in the Oval Office on Wednesday he had canceled a planned summit in Hungary with Putin because it didn't feel like it was the right time.

Trump also said he hopes the sanctions on Russian oil companies will not need to be in place for a long time. Trump said last year that he likes to remove sanctions quickly because of the risks to the dominance of the dollar in global transactions that the measures can bring. Russia has often asked for payments for oil in other currencies.

(With input from news agencies)