EU Sanctions Hit Chinese Oil Giants Amid Russia Tensions

The European Union has included two major Chinese refiners, Liaoyang Petrochemical and Shandong Yulong Petrochemical, alongside trading arm Chinaoil Hong Kong, in its Russia sanctions list. This decision is part of an effort to restrict Russian funding sources by targeting key buyers of Russian crude oil.

The European Union has intensified its economic measures against Russia by adding two significant Chinese oil refiners and a trading arm of PetroChina to its sanctions list. According to the EU's Official Journal, the companies targeted include Liaoyang Petrochemical and Shandong Yulong Petrochemical, along with Chinaoil Hong Kong.

This move highlights the EU's efforts, in collaboration with the Group of Seven, to curb Russia's financial resources, particularly from oil and gas revenues, which are vital for funding its activities in Ukraine. The EU identified these companies as major purchasers of Russian crude, contributing substantially to Moscow's revenue.

Shandong Yulong, a new and large refinery with a 400,000 barrels per day capacity, has seen several of its suppliers halt sales, following recent British sanctions. Liaoyang, on the other hand, has a capacity of 200,000 barrels per day and operates in northeastern China. Additionally, the EU sanctioned Tianjin Xishanfusheng International Trading for allegedly aiding Russia in bypassing sanctions.

(With inputs from agencies.)