China's private refiners secretly buying Russian oil at low prices to evade US' embargoes

China's private refiners have been accused of secretly purchasing Russian oil at substantial discounts at a time when Western countries are contemplating an embargo on Moscow's oil for its unjustified invasion of Ukraine. As per the Financial Times, an official of an independent refinery in Shandong, Eastern China, stated the company had not publicly acknowledged dealings with Russian oil suppliers since the onset of war in an attempt to avoid US sanctions, Sputnik reported. According to the report, the refinery has taken over a portion of the Russian crude purchase quotas from state-owned commodity trading enterprises, which are seen as Beijing's face and have mostly refused to sign new supply contracts.

"The purchases from China's independent refineries reveal how some importers are bypassing traditional routes to access cheap Russian oil, helping Beijing maintain a low profile as the West barrages Moscow with sanctions," the UK daily added. Meanwhile, an executive of the company stated that the Shandong refinery is cautious while purchasing Russian commodities. He further warned that if the US imposes secondary penalties on third-country companies doing business with Russia, the company's Singaporean trading arm could close. 

Chinese refineries prefer Russia's ESPO grade oil from eastern Siberia: Reports

According to reports, commodity traders in the European Union (EU) and Switzerland will also be unable to sell Rosneft barrels anywhere else in the world from May 15. At least six supertankers, each capable of transporting up to 2 million barrels of oil, have reportedly consented to combine Russian Urals crude cargoes in Europe for transit to Asia, mostly China and also in India. The report further stated that the Urals were discounted by $35 per barrel compared to Brent oil, compelling Chinese refineries to purchase them. Chinese refineries are said to prefer Russia's ESPO grade oil from eastern Siberia, which is shipped from Kozmino near Vladivostok by pipeline and ships. 

EU chief calls for Russian oil embargo in 6th package of sanctions

Meanwhile, in the sixth package of sanctions against Moscow, the European Union's top official called on member states to restrict oil imports from Russia and target the country's largest bank and major broadcasters. Addressing the European Parliament in Strasbourg, France, European Commission president Ursula von der Leyen urged the EU member states to phase out Russian crude oil imports within six months and refined products by the end of the year. “We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets,” von der Leyen said, as per the AP. 

Image: AP