Russia Seeks to Boost Oil Exports to China as Sanctions Tighten

Moscow and Beijing have been discussing ways to expand Russian oil exports to China, Russian Deputy Prime Minister Alexander Novak said on Tuesday.

China and India have become the main buyers of Russian oil since the start of Russia's military campaign in Ukraine in February 2022. China imports roughly 1.4 million barrels of Russian oil per day by sea and approximately 900,000 bpd of Russian oil by pipeline.

Last month the United States introduced sanctions against Russia's two largest oil producers, Rosneft and Lukoil.

Russian President Vladimir Putin derided the sanctions as an unfriendly act, saying they would not significantly affect the Russian economy and talking up Russia's importance to the global market.

There have been conflicting reports about prospects for Russian oil supplies to China and India, while Russia's overall crude exports have been relatively steady so far.

Novak told a Sino-Russian business forum in Beijing that Russia has been discussing with Chinese partners the possibilities of expanding oil exports to China.

He mentioned that intergovernmental agreements provide for the possibility of extending the oil supply terms to China through Kazakhstan for 10 years until 2033.

(Reuters - Reporting by Reuters; Editing by Mark Heinrich)