Beijing, Oct 24 (V7N) – Following new U.S. sanctions on Russia’s top oil companies, Rosneft and Lukoil, Chinese state-owned oil firms have temporarily suspended purchases of Russian crude, multiple sources told Reuters on Thursday (Oct 23).

The decision comes as India, Russia’s largest oil buyer, also moves to reduce its imports of Russian crude. Indian refineries are reportedly aligning with Washington’s latest sanctions over the Ukraine conflict.

Energy analysts warn that a sudden decline in demand from China and India could significantly impact Moscow’s revenue. Meanwhile, major importing countries may be forced to seek alternative energy sources, potentially driving up global oil prices.

China’s four state-owned companies—PetroChina, Sinopec, CNOOC, and Zhenhua Oil—have opted to temporarily stop buying Russian oil via maritime routes, fearing the risk of violating U.S. sanctions. None of these companies have issued an official statement on the matter so far.

China imports roughly 1.4 million barrels of Russian crude daily, most of which is purchased by independent refineries, often called “teapot” refineries. Estimates of state-owned company purchases vary. Energy market analyst firm Vortex Analytics reported that in the first nine months of 2025, Chinese state-owned companies imported an average of under 250,000 barrels per day from Russia. Another analytics firm, Energy Aspects, estimated this figure at nearly 500,000 barrels per day.

Two commercial sources indicated that Sinopec’s trading arm, Unipec, halted purchases of Russian crude last week after the UK imposed sanctions on Rosneft, Lukoil, and several Chinese firms.

Typically, Rosneft and Lukoil export oil to China through intermediaries rather than direct sales. Independent Chinese refineries are reportedly monitoring the impact of sanctions and are temporarily pausing Russian oil purchases. Several traders suggest that these independent refineries may resume imports once the situation becomes clearer.

END/WD/AJ/