Reuters is reporting that some Chinese and Indian oil companies are divesting from Russian oil trades following US government’s sanctions of Russia’s oil giants, Rosneft and Lukoil. The Chinese oil companies that have suspended Russian oil purchases are reportedly PetroChina, Sinopec, CNOOC, and Zhenhua Oil and fear secondary sanctions against them if they continue purchasing Russian oil.
Pipeline sales which are based on long-term agreements are not affected according to several reports. The share of Russian oil purchases by the said Chinese companies is also a fraction of the total purchase volume by China.
China is currently engaged in negotiations over a trade deal with the US. The Chinese Foreign Ministry condemned US sanctions on Russia’s oil companies saying that they go against international law and that sanctions should be decided by the United Nations Security Council. India was also previously threatened by President Donald Trump with higher sanctions if it continued purchasing Russian oil.
Reuters is also reporting that oil companies from India, namely Oil Corp (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), plus private giant Reliance Industries, are divesting from Russian oil purchases and and will significantly curb Russian oil purchases by next month.
Newsroom
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