One of China’s largest crude oil importers, Sinopec Shanghai Petrochemical, has announced a reduction in purchases of Russian oil in the first quarter of 2025.
Sinopec Shanghai Petrochemical Vice President Du Jun stated that the decision was made due to "changes in company policy and uncertainty in the political situation."
In 2024, the company's total imports of Russian oil amounted to 1.22 million tons (compared to 500,000 tons in 2023). In the overall structure of Sinopec Shanghai Petrochemical’s crude oil imports, 54.71% comes from the Middle East, 16.63% from African countries, 14.98% from the Americas, and 12.63% from Europe—of which about 9% is Russian oil.
Several factors may have influenced the company's decision:
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U.S. sanctions imposed on Russian oil and gas companies in January 2025, particularly in light of Chinese importers' efforts to avoid secondary sanctions.
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Price fluctuations and market unpredictability caused by political and economic uncertainty.
China is demonstrating caution and seeking to mitigate risks associated with secondary sanctions over dealings with Russian oil and gas companies. Sinopec Shanghai Petrochemical’s decision could prompt other Chinese firms to reconsider their contracts with Russian exporters.
