Sinopec will prioritise risk management in its Russian oil purchases.

Sinopec Corp, the top Chinese refinery, will prioritize "risk management" when purchasing Russian oil. The quality of Russian oil is comparable to that of competing global supplies and its price is similar, according to a senior executive.

These remarks follow a recent decision by China's oil importers, including Sinopec, who have resisted buying Russian oil this month while companies assess compliance after recent U.S. Sanctions on Moscow.

Zhao Dong, the company president, said at a Hong Kong earnings briefing that Sinopec was "fairly capable" to secure crude oil supplies. This includes via long-term supply agreements with multiple partners.

Sinopec diversified its procurement sources in order to fill the gap left by Washington's sanctions against Russian oil sales on January 10, resulting in a temporary halt of trade.

Zhao said that China's tariffs against U.S. gas and oil have "limited" impacts on Chinese imports, and U.S. crude oil supplies make up a small part of Sinopec's purchases.

In 2024, U.S. crude oil accounted only for about 1.7% of China’s imports. Liquefied natural gases from the U.S. made up roughly 5.4%. Sinopec announced on Sunday that its 2024 net profit would be down 16.8%, citing the lower crude oil price and the rapid development of the NEV industry.

(source: Reuters)