China has sharply reduced its imports of Russian oil in recent months, according to statistics from China's customs authority.
Russian oil flows to China, from both pipelines and shipments, plummeted to 1.76 million barrels per day last month, a year-on-year drop of 7.4 percent and the lowest amount so far this year.
This figure marks a continuing decline. Russian oil flows to China in July were down by 22 percent since December and 30 percent since March, the Moscow Times reported.
It's a concerning trend for Russia, continuing even after President Vladimir Putin's high-profile talks with Chinese President Xi Jinping in May. Russia last year overtook Saudi Arabia as China's No. 1 source of fossil fuel, accounting for nearly one-fifth of the world's second-largest economy's oil intake.
Russia has come to rely heavily on trade with China following international sanctions imposed over Moscow's 2022 invasion of Ukraine and the loss of much of the European market for its oil. Trade flows with China ballooned over 26 percent to a $240 billion high last year, with oil accounting for nearly two-thirds of that.
The Russian and Chinese foreign ministries did not immediately respond to written requests for comment.
Meanwhile, China, the world's largest importer of crude oil, has ramped up shipments from Russian competitors in other regions.
Oil imports from Saudi Arabia were up by 13 percent, or 6.41 million tons, since July 2023, per Reuters. Oil shipments from China's third-largest source of oil, Malaysia, increased by 61 percent year-on-year.
Malaysia is a major regional hub for oil shipments, including those reportedly from Iran and Venezuela, which are subject to international sanctions over their nuclear programs and political regimes, respectively. China did not report importing oil from either of these countries.
In the joint statement issued following their May summit in Beijing, Putin and Xi committed to deepening "cooperation in the field of oil, natural gas, liquefied petroleum gas, coal, and electricity" as well as ensuring "unimpeded transportation of energy resources."
Another major source of revenue for Russia's heavily sanctioned economy is its natural gas flows to "no-limits" partner China, which enjoy a significant discount.
However, Putin's visit came just two weeks after Russian state-run gas giant Gazprom reported losing money last year for the first time in more than two decades.
This has added pressure on the Kremlin to push through the planned Power of Siberia-2 pipeline. Despite Putin's efforts, he apparently failed to secure the go-ahead for this project.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
