EU to hit 2 Chinese refineries in upcoming Russia sanctions package — Reuters
Photo: EU to impose sanctions on Chinese refineries (Getty Images)
The European Union is preparing a 19th package of sanctions against Russia, which will include four Chinese companies linked to the oil industry, Reuters reports.
The list includes two Chinese oil refineries, one trading company, and another entity that participated in sanctions circumvention schemes.
According to EU diplomatic sources, these companies helped Moscow circumvent Western restrictions.
Decision agreed upon but not yet finalized
The final text of the sanctions package has been agreed upon by member states, but its adoption has been postponed. According to sources, the delay is due to Slovakia's objections to issues unrelated to sanctions.
The sanctions require a unanimous decision by all EU countries to be approved.
Russia's key ally
China is Russia's key ally in its war against Ukraine, providing financing through the purchase of raw materials.
China buys about half of Russia's crude oil exports. Chinese refineries traditionally prefer ESPO crude from Russia's Far East.
In addition, after Moscow lost the European market, Russian gas is now going to China. According to the Russian Ministry of Economy, over the next 3 years, the price of gas for China will be at least 27% lower than for Türkiye and other customers in Europe. In 2025, the price gap will reach 38%.
Forecasts show that the shift towards China has not been able to compensate for the loss of most European markets.
