India and China are taking opposing approaches in response to U.S. sanctions on Russian oil. While India is reducing its imports of Russian oil amid concerns over potential additional U.S. sanctions, China is significantly increasing its purchases of Russian crude.
According to Reuters on September 23, India's imports of Russian oil in August averaged about 2.1 million barrels per day, a decrease of 16.5% from July. Although Russia remains India's largest oil supplier, its share has declined. Indian refiners are seeking to secure alternative sources, such as from the Middle East, in anticipation of possible further U.S. sanctions against countries purchasing Russian oil. In fact, India's imports of Iraqi oil rose by approximately 25% in August compared to the previous month.
China's actions, however, tell a different story. In August, China imported 11.2 million tons of Russian oil, or about 2.64 million barrels per day, marking increases of 41% year-on-year and 23% from July. The share of Russian oil in China's total imports has also grown significantly.
This increase in Russian oil imports by China is partly due to disruptions in Middle Eastern oil supplies. With the ongoing conflict in Iran and instability in the Strait of Hormuz affecting oil procurement from the Middle East, Chinese state-owned oil companies, including Sinopec, have expanded their purchases of Russian Far East crude. Reuters reported that Sinopec has increased its Russian oil purchases to compensate for the reduced supply from the Middle East.
China is also reportedly sourcing oil from sanctioned countries through indirect means. In August, China's imports of Malaysian oil totaled 2.6 million tons, or 620,000 barrels per day, which is a 45% decrease from the previous year but a 74% increase from July. Malaysia has been identified as a major transshipment hub for Iranian oil, and analysts suggest that some of the volumes labeled as Malaysian and Indonesian may actually be Iranian oil. However, it cannot be definitively concluded that all Malaysian oil in Chinese customs statistics is of Iranian origin.
The increase in Russian oil imports by China stands out when compared to other suppliers. In August, imports from Saudi Arabia fell by 47% year-on-year, while imports from Iraq and Oman decreased by 75% and 71%, respectively. This indicates that China is shifting some of its oil supply sources from the Middle East to Russia.
The contrasting actions of India and China illustrate that U.S. sanctions on Russian oil are not having the same impact on both countries. While India, exposed to U.S. pressure, is diversifying its supply sources, China is actively absorbing Russian oil to maintain its energy procurement network.
* This article has been translated by AI.
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