Russia Becomes Biggest Supplier of Oil to China

According to media reports, Russia has become China's largest oil supplier after selling discounted crude to Beijing amid sanctions related to the Ukraine war. Russian oil imports increased by 55% year on year to a record level in May, displacing Saudi Arabia as China's largest supplier, according to the BBC.

Despite Covid curbs and a slowing economy, China has increased its purchases of Russian oil. Chinese firms, including state-owned Sinopec and Zhenhua Oil, have increased their purchases of Russian crude in recent months after being offered steep discounts as buyers in Europe and the United States avoided Russian energy due to sanctions related to Russia's war in Ukraine, according to the BBC.

According to Chinese General Administration of Customs data, imports into China totaled nearly 8.42 million tonnes last month, including supplies pumped through the East Siberia Pacific Ocean pipeline and shipments by sea. This pushed Saudi Arabia, which was previously China's largest crude oil supplier, into second place with 7.82 million tonnes.

The United States and the United Kingdom announced in March that they would ban Russian oil, while the European Union has been working to reduce its reliance on Russian gas as the West intensifies its economic response to Ukraine's invasion.