Saudi Arabia Surpassed... Russia Becomes China's Largest Oil Exporter

Import Volume in January-February Surges 23.8% Compared to Previous Year

This year, Russia has surpassed Saudi Arabia to become China's largest oil exporter.

According to data from the General Administration of Customs of China, China's imports of Russian oil from January to February totaled 15.68 million tons, or 1.94 million barrels per day (bpd), marking a 23.8% increase from 1.57 million bpd during the same period last year, Reuters reported on the 20th.

Until last year, Saudi Arabia was China's largest crude oil supplier, with Russia ranking second. In the previous year, Saudi Arabia exported a total of 87.49 million tons, while Russia exported 86.20 million tons of crude oil to China.

Russian President Putin.
Photo by Yonhap News

This year, Saudi Arabia's crude oil exports to China have decreased. From January to February last year, China's imports of Saudi Arabian crude oil were 1.81 million bpd, but during the same period this year, it fell to 1.72 million bpd.

This contrasts with the restrictions imposed by the United States, Europe, and other Western countries on Russian oil imports following the outbreak of the Russia-Ukraine war.

The European Union (EU), the Group of Seven (G7), and Australia have strengthened sanctions by implementing a price cap on Russian crude oil since December last year and on Russian refined petroleum products since February this year.

China temporarily suspended imports of Russian crude oil before the EU and others introduced the price cap but has recently resumed and gradually increased its import volume.

Due to the price cap, Russian crude oil has been traded at discounted prices, making China the biggest beneficiary of the discount effect by increasing its purchases of Russian crude oil.

The trade ties between China and Russia are expected to deepen further following the summit between President Xi Jinping and Russian President Vladimir Putin. From today until the 22nd, President Xi and President Putin, who are visiting Russia, will discuss not only diplomatic and military issues such as the Russia-Ukraine war but also economic cooperation measures.