China’s state-owned oil giants have paused their purchase of Russian crude oil in response to recent US sanctions targeting Moscow’s two largest oil firms, Rosneft and Lukoil, Reuters has reported. 

This suspension, expected to impact global oil markets, is part of a broader shift in international oil trade.

On October 22 2025, the United States imposed sanctions designed to increase economic pressure on Russia amid its ongoing conflict in Ukraine. These sanctions specifically target Rosneft and Lukoil, two of Russia's largest and most influential oil companies, both of which are responsible for a significant portion of the country’s oil exports. In response, Chinese state-owned companies such as PetroChina, Sinopec, CNOOC, and Zhenhua Oil have suspended seaborne oil purchases from Russia, at least in the short term. This move reflects growing concerns over the risks of dealing in Russian oil, which could expose firms to further sanctions or legal complications.

China is one of Russia’s largest oil customers, importing approximately 1.4mn barrels of Russian oil per day, with state-owned enterprises accounting for a significant portion of this volume. However, the suspension by China’s major oil players will not completely disrupt Russian exports. The majority of Russian oil destined for China is purchased by smaller, independent refiners, known as "teapots." These refiners, unlike their state-owned counterparts, are expected to continue assessing the risks but will likely resume imports once they fully evaluate the new sanctions.

China’s decision to halt Russian oil purchases follows similar moves in India, another major buyer of Russian crude. India’s largest refiner, Reliance Industries, has already indicated plans to drastically reduce Russian oil imports, and other major players such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are expected to follow suit. Together, China and India account for roughly 90% of Russia’s seaborne oil exports, meaning any reduction in their purchases could significantly impact global oil supply chains.

The decision by China and India to scale back their Russian oil imports will put additional pressure on Moscow’s oil revenue and could trigger further volatility in global oil prices. As these two countries turn to alternative sources of crude, such as the Middle East, Africa, and Latin America, global oil prices are expected to rise. In the meantime, Russian oil producers are seeking alternative markets, but the shift may not be enough to offset the loss of two of their largest buyers. This disruption could also lead to a greater reliance on the so-called "shadow fleet" of tankers designed to circumvent sanctions, although this approach presents its own risks and challenges.