BEIJING: Chinese imports of Russian oil last month hit their highest level since Moscow’s February 2022 invasion of Ukraine, customs data showed on Tuesday, as Beijing offers an economic lifeline to an increasingly isolated Kremlin.
China is Russia’s largest economic partner, with trade between them reaching a record $190 billion last year. In May, China imported 9.71 million tonnes of oil from Russia, Beijing said, more than double the amount from February 2022.
The figures reflect a broader deepening of economic ties between the countries, with overall trade in May soaring to levels not seen since Moscow’s invasion of Ukraine. They also occur in the context of China’s rebounding economy, following the end of strict zero-Covid measures late last year that had bitten into energy demand.
During a summit in March, Chinese leader Xi Jinping and Russian President Vladimir Putin pledged to boost trade to $200 billion in 2023 as they hailed their “no limits” partnership. Russian energy deliveries to China this year are set to grow by 40%, Deputy Prime Minister Alexander Novak said last month.
Russia’s gas exports plummeted in 2022 after a flurry of Western punishments over Moscow’s offensive in Ukraine. Speaking about Russia’s economy this month, Putin said the second quarter of last year had been “the most difficult” after unprecedented sanctions.
As Europe looked for other energy suppliers, Moscow turned to alternative buyers including China, with which it is already linked by the Power of Siberia pipeline. After his talks with Xi, Putin said that “all agreements have been reached” on the massive new Power of Siberia 2 project.
That pipeline could facilitate the transport of 50 billion cubic metres of natural gas to China annually, roughly on par with the total capacity of the abandoned Nord Stream 2 project from Russia to Germany.
Moscow is confident that the new pipeline will go ahead, but Beijing has so far avoided an explicit commitment.