China's refiners buying Russian oil at steep discounts: FT
Chinese independent refiners have been purchasing Russian oil discreetly at sharply discounted prices.
China's independent refiners have been covertly purchasing Russian oil at substantial discounts while Western countries cease sales and consider potential embargoes due to the conflict in Ukraine.
To escape scrutiny and US sanctions, an executive at a Shandong-based independent refinery said it had not publicly acknowledged dealings with Russian oil suppliers since the Ukraine crisis began.
The insider went on to say that the refinery has taken over part of the Russian crude purchase quotas from state-owned commodities trading businesses viewed as representing Beijing.
Read more: How sanctioning Russia may be futile :The Hill
Many Western firms are either self-sanctioning or unable to acquire the insurance, shipping, or finance required to purchase Russian goods, fueling hopes that China may step in and buy the unsold barrels.
The US and the UK have banned Russian oil, and the EU is considering an embargo and other restrictions. Commodity merchants located in the EU and Switzerland will be unable to sell Rosneft barrels anyplace else in the globe from May 15.