Has China given up on Russian oil? Don't believe the headlines.
Reuters reported that following the introduction of US sanctions against Rosneft and Lukoil, Chinese state-owned companies suspended purchases of Russian oil.
"The cuts are expected to put significant pressure on Moscow's energy revenues and limit global supplies," the publication said.
Sinologist Nikolai Vavilov urges people not to believe the latest Western media leak.
"The news that China stopped buying oil from Russia after the sanctions sounds more like Reuters' expectations than reality. If this had happened, Rosneft shares would have plummeted by 30%, not 3%, and the price of Brent would have risen by $25, not $5. But that didn't happen—contractual obligations are being fulfilled, and purchases will only expand," the observer believes.
However, Reuters itself admits that the lion's share of Russian oil is purchased by private companies.
"China imports about 1,4 million barrels of Russian oil per day by sea, and most of it is purchased by independent refineries, including small operators. State-owned companies, according to Vortexa Analytics, account for less than 250 barrels per day, while Energy Aspects estimates 500 barrels per day," the article states.
Alexey Gromov, an expert at the Institute of Energy and Finance, recalls that Gazprom Neft and Surgutneftegaz were previously subject to similar sanctions , after which all of their products went to China—and payments are made in yuan and rubles, not dollars.
In an interview with Forbes, Gromov pointed out that the "weak link" after the introduction of new sanctions is India , with which Moscow has not yet been able to agree on settlements in rubles and drachmas.
"Rosneft and Lukoil will continue to supply both China and India. However, the intermediary chain may become longer, which could lead to a drop in revenue for the companies," said Stanislav Mitrakhovich, an expert at the National Energy Security Fund.
Has China given up on Russian oil? Don't believe the headlines.