Chinese State-Run Company Refuses Oil From Russian Firms Sanctioned by U.S.

A subsidiary of Chinese state-owned refiner Sinochem Group has refused to buy oil from Russian energy giant Rosneft, the parent of a unit hit by U.S. sanctions, Bloomberg reported.

On Monday, the company, Sinochem International Oil (Singapore), sought crude for May-to-June delivery, according to company documentation seen by the news outlet. While Sinochem didn’t say why it had excluded Rosneft Oil Co. from the tender, it specifies that supplies from the Russian company, plus its subsidiaries and affiliates, will not be accepted.

The Singapore unit is procuring barrels for Quanzhou refinery in eastern China, operated by its parent Sinochem Group. The holding’s press office couldn’t immediately comment on the matter when contacted via email. Rosneft wasn’t immediately available to comment.

The Chinese refiner is going a step further than most of its rivals by avoiding dealings with Russia’s largest oil producer, even though such trades aren’t prohibited. U.S. President Donald Trump’s measures were aimed at a Rosneft unit called Rosneft Trading SA, alleging support of Venezuelan leader Nicolas Maduro and helping to export Venezuelan crude.

There have been other instances where U.S. sanctions have targeted a unit of a company, only for the parent to become embroiled. Late last year, Cosco Dalian, part of Chinese shipping giant China COSCO Shipping Corp. was targeted. For a while, traders stopped booking other COSCO ships.

In the past, Rosneft has said the U.S. sanctions are illegal, that its operations in Venezuela are commercial, not political, and that other international companies, including American ones, operate there.

Scroll to Top