China state firms curb Russian oil imports on sanctions risks

SINGAPORE, March 15 (Reuters): Chinese state oil companies are shying away from Russian oil this month, with two importers halting purchases while two others scaled back volumes as they assess compliance following recent US sanctions on Moscow, multiple trade sources said.
Russian oil supplies to top buyers India and China fell sharply following the January 10 sanctions by the former Biden administration targeting Russian producers Gazprom Neft and Surgutneftegaz as well as insurers and more than 100 vessels to curtail Moscow's oil revenue.
While Russian shipments to the two Asian countries have rebounded after more non-sanctioned tankers joined the trade, China's state-run Sinopec and Zhenhua Oil halted purchases of March-loading Russian oil due to concerns over dealing with the sanctioned firms, sources with knowledge of the matter said.
The scaled-back buying by Chinese state players has weighed on Russian oil prices, eating into Moscow's revenue and putting additional pressure on Russia ahead of a possible ceasefire deal with Ukraine.
A Beijing-based state oil source said his company ceased Russian oil deals as it undertakes more compliance checks and waits for a "clear picture" on a possible Russia-US deal to end the Ukraine war.
The company would resume purchases if talks lead to the US easing or lifting sanctions on Russian oil, the person added, declining to be named or to identify their company.