After several governments in the West imposed economic sanctions on Russia for invading Ukraine, Russia offered discounts on its oil, which was immediately grabbed by China.
Even before the Ukraine war, China was one of the largest buyers of Russian oil. But, once the Russian attack on Ukraine started, Beijing’s purchases of oil from Moscow only increased.
Although China chose not to condemn Russia’s attacks on Ukraine for economic interests publicly, it has called for an early end to the war trying to act as a friend to both Ukraine and Russia.
China has defended the purchase of oil from Russia, saying it must source crude oil from wherever it is available at a cheap rate. China also continues to buy oil from the Middle East as well as Angola and Brazil, although in July, Russia remained its top supplier for the third month in a row.
From March to May, China bought 14.5 million barrels of oil, which marks a three-fold increase from the same period last year.
The adverse impact of the covid-19 pandemic on the global economy has knocked oil prices and futures contracts down to levels not seen in decades.
Under the current scenario, diplomatic relations between Russia and China are getting stronger as Russia becomes totally dependent on China. China’s imports from Russia jumped a record 80% in May last year, Portal Plus quoted Oksana Lesnyak, Head of the Asia-Pacific Bureau of the Kyiv-based Center for Global Studies Strategy XXI However, China too is experiencing financial difficulties due to its covid-19 lockdowns and property crisis. So, if it gets an opportunity to fill in its soil reserves by purchasing cheaper oil, it will definitely take advantage of that opportunity.
“Lots of these things can be done more constructively behind the scenes than in the limelight,” China expert Victor Gao, a professor at China’s Soochow University and vice president of the Center for China and Globalization, was quoted as saying.
“As this relationship develops, Russia’s position will become weaker, hence China will be pushing for higher discounts on Russian oil and gas exports,” he added.