China allegedly decreased purchases of Russian energy resources.
China Cuts Back on Russian Energy Imports
China, a long-standing ally of Russia, is reportedly altering its energy import strategy. Preliminary reports suggest a significant reduction in the import of oil, coal, and liquefied natural gas from Russia, potentially causing financial losses for Moscow of up to 30 percent, contingent on the sector.
According to information from the Ukrainian foreign intelligence service, China has been systematically curbing its purchases of Russian energy. In the first four months of 2025, Russian oil imports dropped by 14 percent to 32.4 million tons, resulting in a 23.9 percent decrease in revenues to $17.1 billion.
This reduction aligns with a report by the news agency Reuters from January, citing customs data, stating that China bought less Russian coal in 2024 and increased its purchases from other major suppliers, notably Australia.
China's purchases of coal reached a record high of 547.2 million tons last year, or 41 percent of globally traded coal, according to a study by the London Stock Exchange Group. This shift affords China greater purchasing power on international markets.
The Ukrainian intelligence service attributes the decline in Chinese purchases of Russian energy to Beijing's pursuit of energy self-sufficiency, the expansion of the electric vehicle market, stricter Western sanctions, and China's desire for lower prices.
Imports of liquefied natural gas fell by 27 percent, leading to a 28 percent drop in revenues for Moscow. Although Russian coal imports increased by 2 percent in four months, they dropped by 13 percent in April. China, in response, is bolstering its own production and increasing the share of renewable energy. China is unwilling to pay more for additional quantities than Russian consumers.
Investments from China to Russia have also diminished, decreasing from $1.2 billion per year from 2011 to 2018 to $400 million in 2022 and 2023. The Ukrainian foreign intelligence service has linked this trend to the ongoing conflict in Ukraine, sanctions, and the unpredictability of the Russian regime.
Infrastructure limitations and a diversification strategy are hindering China's potential to considerably increase its energy imports from Russia. Land routes for oil delivery are nearing capacity, making sea routes more viable, albeit less profitable for Russia. The Power of Siberia-2 pipeline project, aimed at significantly boosting gas exports, faces financial and political hurdles, including a lack of demand in northern China.
While China's energy imports from Russia have not experienced a substantial decrease, the diversification efforts and infrastructure constraints pose challenges for Russia's ability to expand its energy exports to China. This poses an additional challenge for Russia, particularly when taking into account the declining demand from Europe and other sanctions-related issues.
- China's community policy, guided by the pursuit of energy self-sufficiency and lower prices, has led to a decreased employment in the energy sector, as shown by the reduction in its purchases of Russian energy.
- In the realm of finance, China's diversification strategy in energy imports has resulted in lower investments in the Russian industry, as indicated by the decline in investments from China to Russia.
