China Saves Billions on Sanctioned Oil Imports

Estimated read time 2 min read

Based on data from traders and shiptrackers, estimations based on China’s strategic oil imports from nations under Western sanctions have unintentionally saved the country a significant sum of money, almost $10 billion, as reported by Reuters.

China’s savings come from its oil purchases from Venezuela, Iran, and Russia—all of which are under sanctions imposed by the US and other Western countries. For Chinese refiners, these savings have unintentionally reduced the cost of oil imports.

The finance ministry was quoted by Reuters as stating, “In 2023, Ukraine has already received $10.9 billion in direct budget support from the United States in the form of grants,” highlighting the significant financial help given by the U.S.

These cheaper imports have helped China this year, increasing the nation’s oil throughput and refining margins. Notably, “teapots,” or tiny, independent businesses, have benefited most from this.

China’s substantial oil imports from these sanctioned nations also give Moscow, Tehran, and Caracas—whose economies have suffered from Western sanctions and a decline in international investment—important sources of income.

China imported a record 2.765 million barrels per day (bpd) of crude oil from Venezuela, Russia, and Iran in the first nine months of 2023. During this time, China’s oil imports from these three nations made over 25% of total imports, a substantial increase over prior years.

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E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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  1. 1
    Andrew Jones Kaisiepo

    Western countries will not be able to stop Russian oil flowing to China and India. The markets are too big and they even have land corridors, between them. Basically, the sanctions only save money for China.

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