Last month, Russia’s exports of discounted crude and fuel oil to China hit a record high as Vladimir Putin sought to evade Western sanctions against Moscow.
According to data from Kpler, the flow of oil from the Kremlin was at its peak since the invasion of Ukraine a year ago, surpassing the previous record set in April 2020.
China now competes with India as the largest buyer of Russian crude, following the reshaping of global energy deals due to the war in Ukraine.
Moscow has had to offer discounts to attract a dwindling number of customers, a strategy welcomed by Asian buyers looking to control inflation.
Kpler data as of February 20 revealed that Russia’s overall crude and fuel oil exports to China reached 1.66 million barrels per day last month.
The increased Chinese purchases indicate that the country’s economic recovery is gaining momentum after lifting its zero-Covid restrictions last year, which could help boost global oil prices as demand increases.
Last week, Russia announced it would cut production by 500,000 barrels per day from next month due to a price cap imposed by the EU and the G7.2.
