Chairman Xi Just Made a Big Move, China Announces They Will Keep Purchasing Crude Oil and Gas From Russia

Posted originally on the conservative tree house on March 28, 2022 

Joe Biden said the western alliance would target any country that violated the sanctions against Russia.  Specifically, after a lengthy telephone call with Chinese Chairman Xi Jinping on March 18th: “President Biden made clear the implication and consequences of China providing material support, if China were to provide material support to Russia, as it prosecutes brutal war in Ukraine,” the senior administration official said, “not just for China’s relationship with the United States, but for the wider world.” (link)

Today, ten days later, China just called Joe Biden’s bluff.

China announces they will violate the western sanctions and continue to purchase crude oil and gas from Russia.

HONG KONG — Chinese state energy company Sinopec will continue to buy crude oil and gas from Russia, a top executive said on Monday, even as Western democracies step up sanctions in response to the country’s invasion of Ukraine.

The company, known formally as China Petroleum and Chemical, is involved in two major projects in Russia: an oil and gas production joint venture called Taihu in the Volga-Ural petroleum basin in western Russia with state-owned peer Rosneft, and the development of the Amur gas chemical complex and processing plant with Sibur in the Russian Far East, adjoining China.

Sinopec holds a 10% stake in privately owned Sibur.

During his company’s annual results call on Monday, Sinopec President Yu Baocai noted that it bought both crude and gas from Russia last year.

“We will also continue to do so in accordance to commercial principles and international trade regulations in the future with all trading partners in order to develop normal oil and gas trading cooperation,” he said.

Yu provided no figures, but said the buying is in line with the company’s strategy of “diversifying import sources.” Key considerations, he said, include supply types, price, transport costs, tariffs and supply stability.

Referring to Sinopec’s projects in Russia, Yu said that both are “operating stably in general for the time being, and there are no indications of impairment.” (read more)

As far as geopolitical chess is concerned, Chairman Xi just put Joe Biden in ‘check.’

There is no way Joe Biden is going to challenge or confront Xi Jinping directly.  However, the intent of the western alliance to change the landscape of economics, trade and finance for the rest of the world is now directly being tested.   We can also look at this like China testing NATO.

Your move Joe….

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.