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BBG-China In Talks w/Russia To Buy Strategic Oil Reserves

CHINA-RUSSIA

Bloomberg reporting that China is in talks with Russia to purchase oil from Moscow's strategic oil reserves.

  • Comes shortly after Russian Deputy PM Alexander Novak stated that Russia continues to seek demand from sources outside Europe for its oil, with the potential for an EU embargo on Russian oil looming.
  • Earlier this year (before the Russian invasion of Ukraine), Rosneft signed a 10-year deal with China extending the existing 200k/bbd oil supply through Kazakhstan.
  • US and other Western allies remain on high alert as to China's stance towards Russia. Concerns in the West that China's studied neutrality on the issue of the war in Ukraine could shift in Russia's favour with closer economic and commodity links between the two nations.

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