Shanghai Petrochem, a subsidiary of Sinopec and one of China's largest crude oil buyers, has significantly increased its crude oil imports from Russia. In the first half of 2024, the company purchased 620,000 tonnes of Russian crude oil, marking a notable rise from the same period last year when no Russian crude was procured. This development coincides with Chinese Premier Li Qiang's official visit to Moscow, highlighting a strengthening of economic ties between China and Russia.
The revelation came during an interim results briefing in Hong Kong, where Du Jun, Shanghai Petrochem's Vice President and Chief Financial Officer, disclosed the figures. According to Du Jun, Russian crude accounted for 10% of Shanghai Petrochem's total crude sourcing, with the majority still sourced from the Middle East. The purchase aligns with a broader trend in the global oil market, as geopolitical shifts and economic strategies influence trade dynamics.
Shanghai Petrochem's strategic decision has been documented in a report by Reuters, published in June 2023. The report highlighted the significance of this move within the global oil industry, as it reflects changing alliances and supply chain adjustments. The company's increased procurement of Russian oil underscores its adaptive strategy in response to evolving market conditions and international relations.
In Russia, regions such as the Republic of Tatarstan are noted for their oil production, with oil pump jacks being a common sight outside cities like Almetyevsk. The region's robust oil industry plays a crucial role in supplying crude to international buyers like Shanghai Petrochem.