China ministry meets refiners for update on Russian oil trade

SINGAPORE: China’s commerce ministry has met independent oil refiners to discuss their deals with Russia, five sources with knowledge of the matter said, imports which have saved Chinese buyers billions of dollars.

China and India are buying at deep discounts amid Western sanctions on Russian oil and more recently, embargoes and price caps.

In discussions with about 10 independent refiners last week, the ministry enquired about the volumes and prices of their Russian oil imports, the sources said.

Officials also asked refiners if they had encountered any obstacles in these transactions, they added.

“The government wants to understand how much independent refiners could possibly buy and their actual appetite for such imports,” said one source with direct knowledge of the discussions. The sources declined to be named as the discussions were not public. The ministry did not respond to a request for comment.

“Officials wanted to have a handle on the basics on the ground, so when China communicates with Russia the government would know what to talk about,” said one China-based source, a senior executive that deals with Russian oil.