China's Exclusive Advantage... China's June Imports of Russian Crude Oil and Coal Reach Record High

June Russian Crude Oil Imports Increase by 40%

China's imports of crude oil and coal from Russia last month reached an all-time high. Russia, whose energy sales have significantly declined due to Western sanctions such as the 'oil price cap,' is rapidly increasing its dependence on China, with which it maintains a friendly diplomatic relationship.

[Image source=Yonhap News]

On the 22nd, major foreign media including Bloomberg cited Chinese customs authorities reporting that China imported 10.6 million tons of coal from Russia in June this year. This amount exceeds the combined imports from major sources Indonesia and Mongolia.

The volume of Russian crude oil imported by China last month also recorded 10.5 million tons, a 40% increase compared to the same period last year.

Earlier, Western countries including the United States and Europe introduced an oil price cap at the end of last year, agreeing to purchase Russian crude oil only below a certain price level. Participating countries decided not to provide related services such as insurance, maritime transport, and financial services necessary for oil transportation to companies that violate the oil price cap by purchasing oil above the specified price. This measure aims to deliver a blow to the Russian economy, which funds the war through energy resource sales.

As a result, Russia had to diversify its sales destinations to countries like China. Due to Western sanctions, existing buyers avoided purchasing Russian crude oil, causing a sharp decline in energy sales revenue. War expenses continued to increase, and the fiscal deficit also grew. From China's perspective, it was advantageous to purchase Russian crude oil at relatively low prices.

Bloomberg reported, "China has not joined the US-led sanctions even after Russia's invasion of Ukraine last year and maintains relations with President Vladimir Putin," adding, "As Western buyers avoid shipments of Russian crude oil and coal due to the war, China has proven to be an important outlet for Russian oil and coal exports."