China Boosts Russian Oil Purchases as India Cuts Back Amid US Tariffs
Chinese refineries are snapping up more Russian crude oil, buying shipments from ports usually serving India. This shift comes as India reduces its imports of Russian oil, pressured by U.S. tariffs imposed by President Donald Trump.
Analysts report that China has secured at least 15 cargoes of Russian oil set for delivery in October and November. These shipments, each holding between 700,000 to 1 million barrels, will be loaded from Russia’s Arctic and Black Sea ports—locations that traditionally supply India.
Since Russia’s invasion of Ukraine in 2022, both China and India became top buyers of Moscow’s crude, filling the gap left by Western countries avoiding Russian exports. However, Trump’s threat in July to impose extra tariffs on countries importing Russian oil—aimed at pressuring Russia to end the war—hit India hard. Earlier this month, Trump added a 25% tariff on Indian exports to the U.S., targeting Indian purchases of Russian oil and gas. This caused India to sharply cut its Russian oil imports.
According to Muyu Xu, senior crude oil analyst at Kpler, Chinese state-owned and private refineries have recently purchased around 13 cargoes for October and two for November. Xu says China’s increased buying is an opportunistic move, as Russian oil remains at least $3 cheaper per barrel compared to Middle Eastern oil.
“With India facing intense pressure from the U.S., China is taking advantage of this price gap,” Xu explained. “This is a good opportunity right now for Chinese buyers.”
Following a recent meeting with Russian President Vladimir Putin, Trump told Fox News he wasn’t planning immediate tariffs on China for buying Russian oil but hinted that such action could come within a few weeks.
Xu predicts more Chinese refineries will join the buying spree if prices stay low: “Within a week or two, we expect to see more interest from China.”
Last year, India imported $53 billion worth of Russian petroleum and crude oil, making Russia its largest crude supplier at 36% of its market share. China imported $62.6 billion in Russian crude, accounting for 13.5% of its total crude imports.
However, Xu notes that China won’t be able to fully replace India’s demand. India imports around 1.7 million barrels per day from Russia, while China’s imports of seaborne Russian oil are about 1.2 million barrels per day.
“If India continues to hold back on buying Russian oil, it will create real challenges for Russia, since China alone can’t absorb all of India’s volume,” she said.