{"id":11969,"date":"2025-10-28T15:10:15","date_gmt":"2025-10-28T12:10:15","guid":{"rendered":""},"modified":"2025-10-28T15:10:15","modified_gmt":"2025-10-28T12:10:15","slug":"russia-discounts-espo-crude-for-china-following-new-us-sanctions","status":"publish","type":"post","link":"https:\/\/harici.com.tr\/en\/russia-discounts-espo-crude-for-china-following-new-us-sanctions\/","title":{"rendered":"Russia discounts ESPO crude for China following new US sanctions"},"content":{"rendered":"<p>The United States (US) new sanctions against Russia&#8217;s energy giants Rosneft and Lukoil have directly impacted the prices of the country&#8217;s Far East ESPO crude oil.<\/p>\n<p><em>Bloomberg<\/em>\u00a0<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-10-28\/key-russian-oil-grade-slumps-as-us-sanctions-hamper-china-buying\">reported<\/a><\/span> that following these sanctions and the European Union&#8217;s 19th sanctions package, discounts on Russian oil have exceeded $1.5 per barrel.<\/p>\n<p><strong>Premium oil now sold at a discount<\/strong><\/p>\n<p>Traders who spoke to\u00a0<em>Bloomberg<\/em>\u00a0stated that in spot sales this week, ESPO crude was trading at $0.5 below the price of Brent crude, including delivery costs.<\/p>\n<p>Last week, before the sanctions were announced, the same oil was sold at a premium of over $1 per barrel compared to Brent.<\/p>\n<p><strong>Rosneft is the target of the sanctions<\/strong><\/p>\n<p>Low-sulfur Siberian oil, transported via the East Siberia-Pacific Ocean (ESPO) pipeline, traditionally commands a higher price than high-sulfur Ural oil.<\/p>\n<p>The majority of ESPO oil is exported by Rosneft, a company targeted by US sanctions. Lukoil&#8217;s shipment volume on this pipeline is smaller than Rosneft&#8217;s.<\/p>\n<p>Gazprom Neft and Surgutneftegaz, which also ship oil through the same pipeline, are already on the sanctions list.<\/p>\n<p>This particular oil is in high demand from both China&#8217;s state-owned refineries and private refineries accustomed to processing sanctioned crude from Iran and Russia.<\/p>\n<p><strong>Chinese state companies halt purchases, private companies continue<\/strong><\/p>\n<p>According to\u00a0<em>Bloomberg<\/em>&#8216;s report, some Chinese state-owned refineries, including Sinopec, have canceled their purchases of Russian oil following the latest sanctions. Most of these cancellations involve ESPO-grade shipments.<\/p>\n<p>However, the analytics firm Vortexa assesses that China&#8217;s private refineries are purchasing approximately 800,000 barrels per day of Russian ESPO, Sokol, and Sakhalin Blend crude, and this demand is expected to remain high.<\/p>\n<p>It is not yet clear whether these refineries will take over the shipments canceled by the state-owned companies.<\/p>\n<p><strong>Exports reached a record level in September<\/strong><\/p>\n<p>Meanwhile, according to calculations by the Russia-based Price Indexes Center, the export of seaborne ESPO crude oil increased by 22.6% in September compared to August.<\/p>\n<p>According to the\u00a0<em>RBC<\/em>, daily exports <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.rbc.ru\/business\/13\/10\/2025\/68e930939a7947171c4f5e16\">reached<\/a><\/span> 146,000 tons, or over 1 million barrels, marking the highest shipment level of 2025.<\/p>\n<p><!-- notionvc: 93cd5af0-31ed-4b2a-8916-bbd0dc933aa3 --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States (US) new sanctions against Russia&#8217;s energy giants Rosneft and Lukoil have directly impacted the prices of the country&#8217;s Far East ESPO crude oil. Bloomberg\u00a0reported that following these sanctions and the European Union&#8217;s 19th sanctions package, discounts on Russian oil have exceeded $1.5 per barrel. Premium oil now sold at a discount Traders [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11970,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[5],"tags":[9476,529,10875,13922,3587,9474,13923,13195,13588,5945,8893,683,13860,13926,9471,13925,13924,10924,682],"class_list":["post-11969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-russia","tag-brent-crude","tag-china","tag-chinese-refineries","tag-east-siberia-pacific-ocean-pipeline","tag-energy-sanctions","tag-espo-crude","tag-gazprom-neft","tag-lukoil","tag-oil-discount","tag-oil-prices","tag-rosneft","tag-russia","tag-russian-oil-exports","tag-sakhalin-blend","tag-sinopec","tag-sokol-oil","tag-surgutneftegaz","tag-ural-oil","tag-us-sanctions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Russia discounts ESPO crude for China following new US sanctions - 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