After US, EU piles pressure with more Russia sanctions

The European Union (EU) heaped more economic sanctions on Russia on Thursday, as Chinese state oil companies suspended purchases of seaborne Russian crude following sweeping US sanctions, dealing a double blow to Moscow’s war revenues.

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Volodymyr Zelensky, Ukraine's president (left), and Antonio Costa, president of the European Council, at a European Council meeting in Brussels, Belgium, on Thursday.

(BLOOMBERG)

Chinese national oil companies PetroChina, Sinopec, CNOOC and Zhenhua Oil said they would refrain from dealing in seaborne Russian oil, at least in the short term, due to concerns over US sanctions imposed the previous day on Russia’s two biggest oil producers.

The moves represent a significant escalation in efforts to choke off the revenue that fuels Moscow's invasion of Ukraine and compel Russian President Vladimir Putin to negotiate an end to the nearly four-year conflict. Russian officials and state media dismissed the Western measures, saying they are largely ineffective.

The developments mark a triumph for Ukraine’s President Volodymyr Zelensky, who has long campaigned for the international community to punish Russia more comprehensively for attacking his country.

A sharp drop in oil demand from Russia's two largest customers — China and India — will strain Moscow's oil revenues and force the world’s top importers to seek alternative supplies, likely pushing up global prices.