China has suspended trade in Russian oil. The effect of sanctions on Rosneft and Lukoil

Chinese state oil companies PetroChina, Sinopec, CNOOC and Zhenhua Oil have suspended trade in Russian oil transported by sea. India is also preparing to introduce restrictions on oil imports from Russia. Both countries do not want to expose themselves to the so-called secondary sanctions from the US.

The decision is caused by blocking sanctions, i.e. prohibiting any transactions, imposed on the two largest Moscow oil companies – Rosneft and Lukoil and on their 34 subsidiaries by the United States. Both companies account for almost half of Russia’s total oil exports – a total of 3.1 million barrels per day.

Oil prices on world markets will increase

According to estimates, China imports about 1.4 million barrels of Russian oil per day by sea. The raw material is purchased mainly by independent refineries. According to data from Vortexa Analytics, in the period from January to September 2025, Chinese state-owned companies purchased less than 250,000. barrels of Russian oil per day (500,000 according to calculations by the consulting company Energy Aspects). China also imports approx. 900,000. barrels of Russian oil per day through pipelines, all of which goes to PetroChina.

Last year, China purchased a record over 100 million tons of Russian crude oil, which accounted for almost 20 percent. the country’s total energy imports. Similarly, oil exports to India, which before the war in Ukraine constituted only a small part of its imports, have increased from 2022 to approximately USD 140 billion (approx. PLN 511 billion).

Reuters predicts that China and India will now be forced to look for alternative sources of supply, which will increase oil prices on world markets. Information about the sanctions announced by Trump has already caused an increase in global oil prices. The Brent index, the international benchmark for oil prices, increased by 5%.

After the UK announced sanctions against Rosneft and Lukoil last week, Brent rose 1.6%.

The sanctions are intended to persuade Russia to enter into a ceasefire

The purpose of the blocking sanctions is to limit the financing of military activities carried out by Russia. “These are powerful sanctions against two large oil companies. However, we hope that the war will end quickly and there will be no need to maintain them for a long time,” explained US President Donald Trump, who decided to take such a step a week after Great Britain imposed similar sanctions on Rosneft and Lukoil.

NATO Secretary General Mark Rutte expressed his belief that the US decision could persuade Russia to accept the ceasefire proposal submitted by Donald Trump and supported by Ukrainian President Volodymyr Zelensky. “The Russian economy is already feeling the effects of the war – from long lines at gas stations to destruction of oil and gas infrastructure. I am confident that we will achieve our goal, although it may take some time,” Rutte told Fox News.