China's newest refinery increases Russian oil imports after sanctions - Reuters
Photo: China’s newest refinery ramps up Russian oil exports (Getty Images)
Chinese company Shandong Yulong Petrochemical is increasing imports of Russian oil to compensate for canceled supplies after the UK imposed sanctions on the refinery, Reuters reports.
The refinery, the newest in China with a daily processing capacity of 400,000 barrels per day, is operating at over 90% capacity.
Yulong, based in the eastern oil-processing hub of Shandong, plans to receive 15 shipments of Russian oil in November, sources said. Most of the imports are ESPO blend, but shipments also include Urals and Sokol grades.
The import volumes range from 370,000 to 405,000 barrels per day. These purchases will be a record for Yulong’s Russian oil imports in a single month, compared with an average daily consumption of about 200,000 barrels.
Yulong's decision to supplement its Russian oil purchases came a few days after the UK added it, along with other organizations, to its sanctions list on October 16.
Sanctions imposed by the United States and the European Union on Russian oil trade forced Chinese state oil importers and Indian refineries to suspend Russian oil imports, at least temporarily.
As a result, shipments of the ESPO blend, Russia’s flagship export from the Far East, and Urals, exported from European Russian ports and previously mainly destined for India, are now seeking new buyers.
Sanctions against Russia
On the night of October 23, the US Department of the Treasury announced sanctions against Russia’s largest oil companies, Rosneft and Lukoil. Thirty-six subsidiaries were also targeted.
The Ministry emphasized that it urges the Kremlin to immediately agree to a ceasefire in Ukraine.
On Saturday, October 25, Ukraine’s presidential envoy on sanctions policy, Vladyslav Vlasyuk, commented on potential Russian losses.
He noted that the new sanctions would cause Russia to lose at least 60–70% of its oil exports to India and China. In financial terms, this would mean Russia would lose $5 billion in monthly revenue, rather than the $10 billion it currently earns.
Additionally, according to Reuters, the US has prepared a new list of potential sanctions measures if Russia delays ending the war in Ukraine. At the same time, Washington is initially waiting for steps from Europe.
