The state of war between Russia and Ukraine still remains the same and the U.S.A. imposed heavy financial sanctions on Russia and the Western Countries stopped trading with Russia.
Meanwhile, according to delivery data and oil merchants who talked to Reuters (a new agency), China is secretly boosting imports of oil from Russia at discounted prices, filling the void left by Western patrons walking away from business with Russia after it invaded Ukraine in February.
The movement comes a month after the world’s top oil importer reduced its reliance on Russian supplies, fearful of appearing to overtly assist Moscow and perhaps exposing its state-owned oil companies to sanctions.
The purchases cover the void left by Western countries’ sanctions against Russia following its incursion in late February, which caused the Kremlin’s prices to fall. Barrels of Russian oil are now around $29 cheaper than they were before the invasion, providing China a rare bargain as it grapples with the effects of a slowing economy.
Although several Asian countries have increased their imports of Russian oil in recent months, economists say it is unlikely to be enough to compensate for the significant losses caused by Western sanctions and bans.
Russia has prepared for additional retaliation. Another wave of sanctions on Russia is due to be finalized by the European Union, including a ban on Russian oil purchases. The EU has also proposed banning all Russian oil imports by the end of the year, forcing the country to drastically reduce its crude production.
That idea, however, would require majority consent from all 27 EU member states, including Slovakia and Hungary, which are both heavily reliant on Russian oil imports.
Featured Image: Getty images
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