China's Russian Oil Imports Surge as India and Turkey Reduce Purchases

Impact of Sanctions on Russian Oil Exports

MOSCOW, Jan 23 (Reuters) - China is set to ramp up imports of Russian oil in January, absorbing barrels that would have previously gone to India and Turkey, as tougher Western sanctions force Moscow to redirect flows, LSEG data and traders said.

China's Increased Oil Imports

The United States and the European Union imposed sweeping sanctions in late 2025 targeting Russian oil sellers and shippers, including energy giants Rosneft and Lukoil, complicating purchases for global buyers and tightening scrutiny on Russian crude exports.

Decline in Indian and Turkish Purchases

China is poised to receive nearly 1.5 million barrels per day (bpd) of Russian oil by sea this month, compared with 1.1 million bpd in December, according to preliminary LSEG data. Beijing, already a key consumer of Russian Far East ESPO Blend, also boosted imports of Russian Urals oil to a record high of 405,000 bpd in January, the highest since mid-2023, data provided by energy consultancy Kpler showed.

Market Dynamics and Price Adjustments

India, previously the largest buyer of Russian Urals by sea since the EU embargo on Moscow's oil in 2022, slashed purchases to below 1 million bpd in December, down from an average of 1.3 million bpd last year, LSEG data showed. Indian refiners are expected to keep Russian oil imports near 1 million bpd in January as they diversify supply sources.

Turkey, also a major Russian oil buyer, reduced Urals imports in January to about 250,000 bpd, compared to an average of 275,000 bpd in 2025 and well below the record 400,000 bpd reached in June last year.

"As Indian and Turkish buyers cut purchases recently, some Russian Urals cargoes headed for China," said a trader involved in Russian oil sales. He added that the surplus of Urals barrels weighed on prices.

Discounts for Urals crude delivered to China in late 2025 widened to as much as $12 per barrel below ICE Brent for some cargoes, while current Urals differentials hover near minus $10 to the benchmark, according to two traders active in the Asian market.

Demand for Urals in India and Turkey, both major exporters of diesel to Europe, slumped due to the EU ban on fuels produced from Russian-origin crude, the traders added.

(Reporting by Reuters; Editing by Susan Fenton)