In a bold move that’s raising eyebrows globally, China’s largest new refinery is doubling down on Russian crude imports just weeks after facing UK sanctions. But here’s where it gets controversial: Shandong Yulong Petrochemical, the refinery in question, isn’t just maintaining its operations—it’s ramping them up significantly. According to a Reuters report on October 28, 2025, Yulong is set to import a staggering 15 cargoes of Russian crude in November alone, primarily the ESPO blend, alongside smaller shipments of Urals and Sokol grades. This translates to roughly 370,000–405,000 barrels per day, marking the company’s highest monthly intake of Russian oil to date. For context, Yulong’s previous purchases averaged around 200,000 barrels per day—a clear indication of its growing reliance on Russian supplies.
And this is the part most people miss: This surge comes just days after the UK sanctioned Yulong and several other Chinese entities on October 16, as part of broader Western measures targeting Russian energy trade. While sanctions from the US and EU have forced many Chinese state-run importers and Indian refineries to scale back or halt Russian crude purchases, Yulong’s move highlights a shifting landscape. Russia’s flagship export grades, like ESPO and Urals, are now seeking new markets across Asia, and Yulong is emerging as a key outlet for these redirected barrels.
Here’s the kicker: Is Yulong’s decision a strategic business move or a political statement? Critics argue it undermines Western sanctions, while others see it as a pragmatic response to market dynamics. Meanwhile, the fallout from Greek shipping companies—once responsible for nearly one-third of Russia’s seaborne oil exports—reducing their involvement due to US sanctions on Rosneft and Lukoil has shifted the burden to Russia’s shadow fleet. This has driven freight rates
