• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 14 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry

The One Russian Oil Giant China Simply Refuses To Deal With

China’s state oil and chemicals company Sinochem doesn’t want to have anything to do with crude oil related in any way to Russian oil giant Rosneft or any of its subsidiaries, as U.S. sanctions on two Rosneft units for trading Venezuelan crude are kicking in in May, Reuters reported on Monday, citing two sources familiar with the plans and documents it has reviewed.  

Last month, the United States slapped sanctions on a Geneva-based trading unit of Rosneft, saying that the company Rosneft Trading has been helping Nicolas Maduro’s regime to evade sanctions and to continue selling oil to keep the Venezuelan regime alive.

In response to the sanctions, Rosneft said in a statement in February:

“The sanctions announced by the U.S. Treasury Department against Rosneft’s subsidiary RTSA and its Chairman are illegal, unjustified, and an act of legal abuse.”

Then earlier this month, the US targeted another Rosneft subsidiary that had picked up the PdVSA oil mantle.

The U.S. Treasury has given companies worldwide time until May 20 to wind down operations with Rosneft Trading, otherwise they risk secondary sanctions for continued dealing with the company sanctioned by Washington.

It looks like China’s Sinochem has chosen not to side with Russia in this matter, despite close China-Russia relations. 

Related: Big Oil Is Literally Burning Cash In The Permian

According to one of Reuters’ sources, the Chinese company is steering clear of any Rosneft or Rosneft-related trade with oil because it fears that the U.S. could widen sanctions to Rosneft companies other than Rosneft Trading.

In a tender looking to buy crude oil on Monday, Sinochem explicitly said that the crude it would purchase should not come “from or related to Rosneft Oil Company and its subsidiaries and affiliates”, a document seen by Reuters shows. 

Sinochem shunning Rosneft’s oil comes at a time in the new oil price war between Russia and Saudi Arabia, former allies turned foes which now promise to flood the market with oil in a renewed battle for market share in every corner of the world.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Steven Conn on March 16 2020 said:
    Sounds unreliable and bogus. Rosneft owes money to Chinese oil firms and trades through yuan and euro as well. Reuters claims repeated by Oilprice dont have much credence. Not the first time such were announced in regards to Venezuela, Iran, etc. US sanctions regimes have become ineffective and flaccid. The world is different today.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News