China’s newly authorized Shandong Yulong Petrochemical refinery is dramatically increasing its imports of Russian crude oil in response to supply disruptions caused by Western sanctions. The refinery, with a processing capacity of 400,000 barrels per day, is expected to import 370,000–405,000 barrels of Russian crude in November – nearly double its previous intake from Russia.
The increase in Russian crude comes after shipments from Middle Eastern and Canadian suppliers were canceled due to sanctions imposed by the UK and the EU in October 2025.
The surge in imports reflects a broader trend among Chinese refiners seeking alternative sources in an unstable global energy market. Analysts note that while this strategy guarantees a steady feedstock supply and cost advantages, it also exposes Yulong to potential regulatory and geopolitical risks due to ongoing sanctions on Russian energy exports.
The increased Russian oil purchases underscore China’s determination to secure energy supplies among international uncertainty. For Russia, the arrangement provides a reliable outlet for its crude. The deal also highlights the growing energy dependence between China and Russia, with long-term implications for Eurasian energy trade flows.
The move may influence regional crude pricing, as Yulong’s increased demand for Russian grades could tighten supply elsewhere in Asia. Chinese refiners are reportedly taking advantage of favorable pricing for Russian barrels, allowing them to maintain refining margins even as global oil markets remain volatile.
While the arrangement ensures Yulong’s short-term operational stability, analysts caution that reliance on Russian barrels could create vulnerabilities if sanctions expand or shipping routes are disrupted.
Author: Nia Kokhreidze
