- China is ready to work for a closer partnership with Russia in the energy sector.
- China has been the biggest outlet for Russia’s crude oil after the Russian invasion of Ukraine.
On Tuesday, the President of China, President Xi Jinping, said that China is ready to work for a closer partnership with Russia in the energy sector. His statement came days before the EU embargo on seaborne imports of Russian crude oil and the G7-EU price cap on Russia’s oil is scheduled to be set. He said, “Energy cooperation is an important cornerstone of practical cooperation between China and Russia, and also a positive force for maintaining global energy security,” Also He added that the Chinese side is ready to join hands with Russia to push for clean and green energy development, and safeguard international energy security and the stability of industrial and supply chains.
China has been the biggest outlet for Russia’s crude oil after the Russian invasion of Ukraine. However, the EU bans and embargoes have forced Moscow to re-route most of its crude exports to the biggest Asian buyers, China and India. According to Bloomberg reports, China’s energy imports from Russia, including coal, oil, and natural gas, have reached $60 billion since the Russian invasion of Ukraine, compared to $35 billion in 2021.
China and India have become Russia’s energy clients, with both countries refusing to join the Western sanction push against Moscow. Their decision to continue doing business and forging closer political ties with Russia reflects that China has no intention of joining any price cap mechanisms and is demanding deep discounts from Russia for its crude.