Chinese Companies Halt Oil Purchases from Russia

Chinese companies have ceased oil purchases from Russian firms amid new U.S. sanctions against Moscow, Reuters reports citing sources.

Journalists assert that CNOOC, Zhenhua Oil, Sinopec, and PetroChina Co. have decided to refrain from maritime oil transactions, at least in the short term.

It is noted that Beijing imports about 1.4 million barrels daily by sea; however, independent refineries acquire most of this oil. Furthermore, Russian companies impacted by U.S. sanctions have long stopped direct oil sales to buyers, opting for intermediaries only.

Additionally, the Chinese state-owned company PetroChina receives approximately 900,000 barrels daily through pipelines. Traders believe that U.S. restrictions will not affect its operations.