China and India are pulling back from buying Russian oil after President Trump sanctioned two of Moscow’s biggest exporters Wednesday.
Reuters reported Thursday that Chinese state-run petroleum firms PetroChina, Sinopec, CNOOC and Zhenhua Oil had suspended purchases of seaborne Russian oil after the Treasury Department announced sanctions on Rosneft and Lukoil, citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”
However, shipments of oil via a pipeline connecting Russia and China are set to continue.
Meanwhile, the wire service reported that Indian refiner Reliance Industries would soon reduce or cease imports of Russian crude. A spokesperson for the Mumbai-based conglomerate said Reliance had begun a “recalibration of Russian oil imports,” but did not give further details.
China and India are the world’s most prolific purchasers of Russian oil — together accounting for a whopping 85% of Moscow’s exports in August, according to the Center for Research on Energy and Clear Air.
If Beijing and New Delhi completely divest from Rosneft and Lukoil, Russia’s ability to fund its invasion of Ukraine would likely be permanently hampered.
Beijing “opposes” the US sanctions, Chinese Foreign Ministry spokesman Guo Jiakun said Thursday, claiming they “have no basis in international law.”
The White House has called the sanctions the latest effort to bring Russian dictator Vladimir Putin to the table for serious talks about ending the 32-month-old war in eastern Europe after plans for a summit with Trump in Budapest, Hungary were scrapped earlier this week.
“We’d still like to meet with the Russians,” Secretary of State Marco Rubio told reporters Wednesday evening as he departed Joint Base Andrews for a trip to Israel. “We’d still want to – and I think I – I had a good call with [Russian] Foreign Minister [Sergey] Lavrov, and we’ll follow up on that. We’re always going to be interested in engaging if there’s an opportunity to achieve peace.
“I think the president has said repeatedly for a number of months now that at some point he will have to do something if we don’t make progress on the peace deal,” Rubio added. “Today was the day he decided to do something.”
Meanwhile, Treasury Secretary Scott Bessent said his department was “prepared to take further action if necessary to support President Trump’s effort to end yet another war.”
Meanwhile, the European Union banned the purchase of Russian liquefied natural gas imports and issued sanctions on Chinese companies that supply dual-use goods — meaning items with civilian and military uses — that can help Russia circumvent trading restrictions.
On Thursday, Putin downplayed the sanctions’ possible effects.
“Yes, they are of a serious nature for us, of course, it is clear and they will have certain consequences,” he said, “but they will not significantly affect our economic well-being.”
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