Chinese oil majors suspend Russian oil purchases after US sanctions on Rosneft and Lukoil: Report

China’s state-owned oil giants have suspended purchases of seaborne Russian oil following fresh US sanctions on Rosneft and Lukoil, Moscow’s oil producers, multiple trade sources told Reuters on Thursday.

The move by PetroChina, Sinopec, CNOOC and Zhenhua Oil marks a significant shift in one of Russia’s largest export markets and could further strain Moscow’s oil revenues while tightening global supply.

The four companies did not immediately respond, Reuters stated.

Revenue strain for Moscow

The suspension is expected to cause a sharp drop in oil demand from Russia’s customers forcing Moscow to seek alternative buyers and potentially driving up international crude prices.

While China imports roughly 1.4 million barrels per day (bpd) of Russian oil by sea, most of that is typically purchased by independent refiners, commonly referred to as “teapots.”

Data from Vortexa Analytics estimated that Chinese state firms purchased under 250,000 bpd of Russian oil in the first nine months of 2025, while Energy Aspects put the figure at around 500,000 bpd, Reuters stated.

Sinopec’s Unipec stops buying

Unipec, the trading arm of Sinopec, halted Russian oil purchases last week after the United Kingdom sanctioned Rosneft, Lukoil, and several shadow fleet ships and Chinese entities, including a major Chinese refiner, two sources told the news outlet.

Most Russian crude from Rosneft and Lukoil is sold to China through intermediaries rather than direct contracts, as per traders.

Independent refiners reassess

Independent refiners in China are also expected to pause purchases temporarily to gauge the full impact of the sanctions. However, several traders told the news publication that they would likely resume Russian oil buying once compliance risks are better understood.

Before the sanctions were announced, offers for November-loading ESPO crude fell to a $1-per-barrel premium to ICE Brent, down from $1.70 earlier in October, according to market data.

Pipeline imports unaffected

China also imports about 900,000 bpd of Russian crude via pipelines, all of which goes to PetroChina. Several traders said these pipeline flows are unlikely to be affected by the sanctions, as they are covered under long-term government agreements.

(With Reuters inputs)