Category
Latest news

China’s Largest New Refinery Ramps Up Russian Crude Imports After UK Sanctions

2 min read
Authors
Photo of Ivan Khomenko
Ivan Khomenko
News Writer
Construction underway at Yulong Island Refinery, China’s newest petrochemical hub in Shandong province. (Source: Getty Images)
Construction underway at Yulong Island Refinery, China’s newest petrochemical hub in Shandong province. (Source: Getty Images)

China’s Shandong Yulong Petrochemical is sharply increasing its intake of Russian oil after the United Kingdom imposed sanctions on the company earlier this month, according to Reuters on October 28.

The refinery—China’s newest, with a processing capacity of about 400,000 barrels per day—has maintained output at over 90% of its designed capacity.

Sources cited by Reuters said Yulong plans to receive 15 cargoes of Russian crude in November, primarily the ESPO blend, alongside smaller shipments of Urals and Sokol grades.

The expected volume amounts to roughly 370,000–405,000 barrels per day, marking the company’s highest monthly intake of Russian oil to date. Previously, Yulong’s purchases averaged around 200,000 barrels per day.

Reuters noted that the surge in imports came days after the UK sanctioned Yulong and several other Chinese entities on October 16. The restrictions followed broader Western measures targeting the trade in Russian energy products.

Sanctions imposed by the United States and the European Union have also prompted Chinese state-run importers and Indian refineries to temporarily halt or scale back purchases of Russian crude.

As a result, Russia’s flagship export grades—ESPO from the Far East and Urals from western ports—are seeking new markets across Asia.

The Shandong-based Yulong refinery, part of China’s expanding independent refining sector, is emerging as a key outlet for Russian barrels redirected from previously dominant buyers such as India.

Earlier, Greek shipping companies—responsible for nearly one-third of Russia’s seaborne oil exports—have sharply reduced their involvement following new US sanctions on Rosneft and Lukoil. The withdrawal has shifted the burden to Russia’s shadow fleet, driving freight rates to over $8 million per voyage and complicating dollar-based transactions with India.

See all