Oil Majors Withdraw from Russia...Foreign Media Reports "China Considering Equity Acquisition"

Bloomberg News, Citing Sources
"Chinese Government Discusses Investment Plans with State-Owned Enterprises"

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] As major oil companies join Western sanctions against Russia, foreign media reports have emerged that the Chinese government is considering purchasing stakes in Russian energy and raw material companies.

On the 8th (local time), Bloomberg News of the United States cited anonymous sources reporting that the Chinese government is considering acquiring stakes in Russian gas company Gazprom and aluminum company Rusal.

According to Bloomberg, the Chinese government is discussing potential investment plans with state-owned enterprises such as China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (SINOPEC), China Aluminum Corporation, and China Wugang Group for this purpose.

Sources said that while this move is not a sign of support for Russia's invasion of Ukraine, it is expected to strengthen China's energy security through increased imports. However, they added that although some discussions between companies of the two countries have begun, it is still in the early stages.

Bloomberg added that it contacted the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council and the companies but received no response.

Currently, Western oil companies such as British Petroleum (BP) from the UK, ExxonMobil from the US, and Shell, a British-Dutch company, are gradually withdrawing from their Russian operations. On the 27th of last month (local time), BP announced that it would dispose of its 19.75% stake in the Russian state-owned oil company Rosneft, stating that "Russia's attack on Ukraine is an act of aggression causing tragedy." ExxonMobil is withdrawing from major Russian oil fields. Shell also announced plans to 'gradually' suspend its hydrocarbon-related operations in Russia, including crude oil, petroleum products, natural gas, and liquefied natural gas.

This content was produced with the assistance of AI translation services.