China ramps up Russian crude oil import amid sanctions, lower demand from India & Turkey

Beijing: China is sharply ramping up imports of Russian oil in January, absorbing cargoes that would previously have gone to India and Turkey as tougher Western sanctions force Moscow to redirect crude flows, according to LSEG data and traders cited by Reuters.

The shift follows sweeping sanctions imposed by the United States and the European Union in late 2025 on Russian oil sellers and shippers, including major producers Rosneft and Lukoil. The measures have complicated purchases for global buyers and increased scrutiny of Russian crude exports.

Preliminary LSEG data shows China is set to receive nearly 1.5 million barrels per day (bpd) of Russian oil by sea this month, up from about 1.1 million bpd in December.

In addition to steady intake of Russia’s Far East ESPO Blend, China has significantly raised imports of Urals crude, with shipments reaching a record 405,000 bpd in January — the highest since mid-2023 — according to energy consultancy Kpler.

India, which became the largest buyer of seaborne Russian Urals after the European Union embargoed Moscow’s oil in 2022, reduced purchases to below 1 million bpd in December, down from an average of around 1.3 million bpd last year, LSEG data showed. Indian refiners are expected to keep imports near 1 million bpd in January as they diversify supply sources.

Turkey has also cut back. Urals imports into the country slipped to about 250,000 bpd in January, compared with an average of 275,000 bpd in 2025 and well below the peak of nearly 400,000 bpd recorded in June last year. “As Indian and Turkish buyers cut purchases recently, some Russian Urals cargoes headed for China,” a trader involved in Russian oil sales said, adding that surplus availability has weighed on prices.

Reflecting weaker demand elsewhere, discounts for Urals crude delivered to China widened to as much as $12 a barrel below ICE Brent in late 2025.

Currently, Urals is trading at around a $10-per-barrel discount to the benchmark, traders said. Demand for Urals in India and Turkey has softened after the EU banned fuels made from Russian-origin crude, further reshaping global oil trade flows.