After cutting its prices in response to Western sanctions over the Ukraine conflict, Russia has surpassed Saudi Arabia as China’s largest oil supplier.
After a 55 percent growth in the past year, it surpassed Saudi Arabia as China’s largest supplier, allowing the Chinese government to profit from cheap prices caused by Western countries’ refusal to acquire Russian oil.
In the month of May, Russian oil exports to China totaled approximately 8.42 million tonnes, edging out Saudi Arabia’s 7.82 million tonnes.
Sinopec and Zhenhua Oil, two Chinese state-owned companies, have expanded their purchases of Russian crude in recent months, refining it and reselling it.
Discounts of up to 30% have weakened western sanctions and raised fears that Russia will continue to support its war in Ukraine with these funds.
Russia made about $100 billion in cash from fossil fuel exports in the first 100 days of its invasion of Ukraine, according to the Centre for Research on Energy and Clean Air.
The European Union accounted for 61 percent of total imports, valued $59 billion.
Oil prices have surged by more than 60% in the last year, with worldwide benchmark oil surpassing $112 per barrel as of Monday.
Despite the two countries establishing ties in February previous to the invasion, China vacillated between open support for Russia’s aggression and condemnation of the war.
However, as the fight drags on, the Chinese Communist Party has grown more confident, losing fear of western sanctions imposed in response for Vladimir Putin’s activities.
On June 15, China pledged to stand with Vladimir Putin in the fight for Russia’s’sovereignty and security,’ as the two countries prepare to deepen their economic connections, prompting Washington to warn Beijing that it risked ending up on the ‘wrong side of history.’
In a phone chat with his Russian counterpart, President Xi Jinping refused to condemn Moscow’s vast ongoing military assault on Ukraine.
Beijing has been accused of providing diplomatic cover for Moscow by criticizing Western sanctions and arms deliveries to Kyiv, even as tensions in its own region rise due to growing threats against Taiwan.
It was the two leaders’ second phone contact since Putin began his invasion of Ukraine on February 24.
The two last met in February, when Putin paid a visit to Beijing for the 2022 Winter Olympics opening ceremony.
When the two leaders met just weeks before Putin sent his forces into Ukraine, they pledged to a “no limits” relationship.
Senior Chinese officials reportedly persuaded Putin in March to postpone an invasion of Ukraine until after the 2022 Winter Olympics.
In punishment for Russia’s invasion of Ukraine, the West has imposed unprecedented sanctions, and Moscow believes that Europe and the United States have created a global economic slowdown as a result.
Moscow is also on the lookout for new markets and suppliers to replace the large international companies that fled the country after the invasion.
The European Union and the United States have warned that Beijing’s support for Russia’s war, or assistance to Moscow in evading Western sanctions, would be damaging to relations.
Putin is counting on his country’s partnerships with China and India to bail him out of the economic damage.
According to Chinese customs figures, Beijing is Moscow’s top commercial partner, with trade volumes reaching $147 billion last year.