China's August Imports of Russian Energy Up 68% YoY... Reselling to Europe for Profit

Increasing Imports Despite Russian Sanctions
Reselling Cheaply Purchased Gas to Europe and Asia

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Despite international sanctions against Russia by the United States, the European Union (EU), and others, China is reported to have imported nearly 70% more Russian energy last year compared to the previous year. It is also pointed out that China is making high profits by reselling the Russian energy it purchased cheaply to Europe, which is facing a supply crisis, at higher prices.

According to Bloomberg on the 20th (local time), the General Administration of Customs of China announced that as of August, China's imports of Russian energy including oil, petroleum products, gas, and coal amounted to $8.3 billion (approximately 11.56 trillion KRW), a 68% increase compared to the same period last year. Despite the US and EU sanctions against Russia, China has steadily increased its imports of Russian energy at prices lower than international market rates, with 83% of the energy resources purchased in August being of Russian origin.

In particular, since Russia's invasion of Ukraine in February, China's imports of Russian oil, petroleum products, gas, and coal have totaled $44 billion, a 74% increase compared to the same period last year. China's crude oil imports from Russia in August reached 8.34 million tons, about 28% higher than the 6.53 million tons in August last year. During the same period, coal imports increased by 57% to 8.5 million tons, and liquefied natural gas (LNG) imports rose by 37% to 671,000 tons.

Bloomberg pointed out that China is generating profits by continuously selling Russian energy resources such as LNG, purchased at prices lower than international rates, to Europe, which is experiencing a supply crisis. Due to sanctions, Russia's usual trade routes have been blocked, leading it to sell energy resources to major importers like China and India at prices up to 30% cheaper than international prices.

Especially through the sale of natural gas, which has become scarce in Europe, China is reportedly earning significant profits. According to Hong Kong's South China Morning Post (SCMP), from January to August this year, China's imports of Russian LNG amounted to $2.39 billion, tripling compared to the same period last year. During this period, China resold LNG worth $164 million to European countries such as Spain and France, and sold $284 million worth to Asian countries including South Korea, Japan, and Thailand.

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