Xi: China Looks to Boost Energy Partnership With Russia

Days before the EU embargo on seaborne imports of Russian crude oil and the G7-EU price cap on Russia’s oil are set to take effect next week, Chinese President Xi Jinping was quoted as saying on Tuesday that China is prepared to work for a closer partnership with Russia in the energy sector.

“Energy cooperation is an important cornerstone of practical cooperation between China and Russia, and also a positive force for maintaining global energy security,” Xi was quoted by the Chinese news agency Xinhua as having said in a letter to a China-Russia Energy Business Forum.

“Xi also said the Chinese side stands ready to join hands with Russia to push for clean and green energy development, and safeguard international energy security and the stability of industrial and supply chains, thereby making new contributions to the long-term, healthy and sustainable development of the global energy market,” Xinhua reported.

Following the Russian invasion of Ukraine and the EU’s bans and embargoes, Moscow was forced to redirect the majority of its crude exports to China and India, the two largest Asian consumers. As a result, China is now the largest market for Russian crude oil.

Since Russia’s invasion of Ukraine, Bloomberg reported earlier this month, China has increased its energy imports from Russia to $60 billion, up from $35 billion during the same period in 2021. These imports include coal, oil, and natural gas.

China and India have surpassed the United States as Russia’s top two energy customers as a result of their refusal to support the Western campaign of sanctions against Moscow and instead choosing to maintain economic and political ties with Moscow.

Recent reports claim that some Chinese buyers are hesitant to purchase spot Russian cargoes loading after December 5 because they are awaiting information on the price cap and possible repercussions for buyers.

However, China is not planning to participate in any price-cap mechanisms and is reportedly demanding significant price concessions from Russia for its crude.

Reference: https://oilprice.com/Latest-Energy-News/World-News/Xi-China-Looks-To-Boost-Energy-Partnership-With-Russia.html