EU Sanctions Tighten on Chinese Oil Refineries Supplying Russia

The EU has sanctioned two Chinese oil refiners with a combined capacity of 600,000 barrels per day and Chinaoil Hong Kong, aiming to cut Russia's oil revenue fueling its war in Ukraine. This marks the EU's most significant economic sanctions against Chinese firms, provoking strong opposition from China.

The European Union has expanded its list of sanctioned entities to include two Chinese refiners, Liaoyang Petrochemical and Shandong Yulong Petrochemical, with a total capacity of 600,000 barrels per day, and Chinaoil Hong Kong, a trading arm of PetroChina. The move, detailed in the EU's Official Journal, targets China for its role in facilitating Russian oil trades amidst ongoing efforts to financially isolate Moscow due to its involvement in the Ukraine conflict.

This latest action is the EU's most economically significant against Chinese businesses and aligns with coordinated efforts by G7 nations to cut off crucial oil and gas revenues that support Russia's war capabilities. Additionally, the EU listed Tianjin Xishanfusheng International Trading Co for significant involvement in helping Russia evade sanctions, further escalating tensions between the EU and China.

Reacting to the sanctions, the Chinese commerce ministry expressed strong dissatisfaction, warning the EU against further escalating tensions by targeting Chinese firms. The EU maintains that the sanctioned refineries are key purchasers of Russian crude oil, significantly contributing to Moscow's financial resources, particularly highlighting Yulong as a major single customer of Russian oil.

(With inputs from agencies.)