Chinese Refiner Secures Russian Crude at $35.50 per Barrel Amid Sanctions Erosion

A prominent Chinese independent refinery has closed a shipment agreement for Russian Urals crude at $35.50 per barrel, marking one of the most significant discounted purchases of sanctioned crude in late 2025. The transaction, confirmed through shipping and financial records, reflects growing willingness among Asian refiners to exploit price gaps created by Western sanctions on Russian oil exports. The purchase price represents a discount of more than $20 per barrel compared to Brent crude, which traded at approximately $56.20 during the same period. This pricing advantage arises from the imposition of price caps and shipping restrictions by the G7 and EU, which have driven down the value of Russian crude in secondary markets while maintaining demand from non-Western buyers. The refiner, operating under a non-public corporate name in Guangdong Province, is believed to have arranged the delivery via a third-party vessel registered in a non-sanctioned jurisdiction. The shipment originated from a port in northern Russia and was scheduled to arrive in early January 2026. The transaction highlights how structured trade channels and ship-to-ship transfers continue to enable the flow of Russian crude to Asia, despite formal restrictions. Market analysts note that such deals are becoming increasingly common, with over 120 confirmed shipments of Russian crude to China in the last quarter of 2025—up 35% from the prior quarter. This trend is pressuring global benchmark pricing and reshaping refining margins, particularly for Asian refiners that are now able to access high-sulfur crude at below-market rates.