China’s state-owned oil giants have halted buying Russian seaborne crude following fresh U.S. sanctions targeting Moscow’s top energy producers, according to multiple trade sources.
The move has raised concerns over a significant decline in Russia’s oil exports and foreign income, Reuters reported on Friday (24 October). Washington imposed sanctions on Russia’s two largest oil companies — Rosneft and Lukoil — in retaliation for the Kremlin’s ongoing war in Ukraine.
India, the biggest importer of Russian seaborne oil, is also preparing to scale back crude purchases to comply with the new sanctions. As China and India are among Russia’s largest customers, any reduction in their imports could deal a serious financial blow to Moscow and potentially drive up global oil prices as buyers turn to alternative suppliers.
Trade sources said PetroChina, Sinopec, CNOOC, and Zhenhua Oil — China’s major state-owned firms — will refrain from Russian oil transactions for now due to sanctions exposure risks. However, none of the companies have issued public statements.
China imports an average of around 1.4 million barrels per day of Russian seaborne oil, most of which is bought by smaller independent refineries known as “teapots.” State import volumes remain unclear, with Vortexa Analytics estimating less than 250,000 barrels per day in the first nine months of 2025, while Energy Aspects puts the figure closer to 500,000 barrels.
Rosneft and Lukoil typically export oil to China through intermediaries rather than direct shipments. Analysts expect independent refiners to temporarily pause purchases as they assess sanctions risks, but not to cut Russian imports entirely.
Additionally, China receives around 900,000 barrels per day of Russian crude via pipelines — all supplied to PetroChina — and traders believe these flows will remain largely unaffected by U.S. restrictions.
With sanctions tightening, both China and India are now seeking alternative crude sources. As a result, prices for oil from the Middle East, Africa, and Latin America — which are not currently subject to sanctions — are expected to rise.
