China’s state-owned oil companies, which suspended Russian oil purchases late last year, are returning to the market. According to Reuters, trading arms of Sinopec and PetroChina issued inquiries for Russian crude this week for the first time since November, taking advantage of a relaxation in U.S. sanctions.
Indonesia, Thailand, and Pakistan are also reportedly in similar talks. The primary driver is a severe physical supply shortage. The blockade of the Strait of Hormuz, a transit point for about 20% of global oil and gas, has sharply restricted access to Middle Eastern supplies.
Major exporters have been forced to scale back: Saudi Arabia cut production to 8 million barrels per day, while the UAE temporarily lost 60% of its output. Under these conditions, Russian crude remains the most viable alternative, staying cheaper than competing grades from Brazil and West Africa.
Analytical summary: The return of China’s state giants to Russian contracts in March 2026 is a direct consequence of Middle Eastern instability, which has proven more effective for Moscow than any lobbying efforts. For the EU, this signals that the global energy deficit provides a “window of opportunity” for the Kremlin to bypass technological and financial isolation.
However, this success is situational: China is acting out of energy survival rather than political solidarity. Russia’s reliance on Asian demand only deepens as the Strait of Hormuz remains blocked, granting Beijing more leverage to demand even steeper discounts once the crisis subsides.