China denounced new U.S. sanctions against Russia's two largest oil producers, Rosneft and Lukoil, calling them illegal and counterproductive, as Washington intensified efforts to choke off Moscow's energy revenues and force an end to the war in Ukraine.
At a regular briefing Thursday, Chinese foreign ministry spokesman Guo Jiakun said Beijing "opposes unilateral sanctions without a basis in international law or United Nations Security Council authorization," according to the state-run Global Times. "Dialogue and negotiation are the only feasible ways to resolve the Ukraine crisis, rather than coercion and pressure," he added.
The comments marked Beijing's sharpest response yet to the Trump administration's latest measures, unveiled Wednesday by the U.S. Treasury Department. The sanctions freeze all U.S.-based assets of Rosneft and Lukoil and prohibit American firms and individuals from conducting business with them. The Treasury said the action aimed to "degrade" Russia's ability to finance its war and warned that more penalties could follow if Moscow refuses to negotiate a ceasefire.
President Donald Trump told reporters at the White House that Chinese President Xi Jinping "could have a big influence" on Vladimir Putin and said the issue "will certainly" be on the agenda when the two leaders next meet. Trump also cancelled a planned summit with the Russian president, describing it as "not the right time."
The sanctions threaten to disrupt key energy flows between Russia and its largest Asian customers. China imported about 2 million barrels per day of Russian crude in September, while India took in around 1.6 million barrels, according to data from Vanda Insights. Together, Rosneft and Lukoil account for roughly half of Russia's 4 million barrels a day of crude exports.
"This is potentially a very significant escalation," said Muyu Xu, senior crude oil analyst at Kpler. "Trump's sanctions on Rosneft and Lukoil [will] have significant implications for Russian seaborne crude exports, potentially prompting major buyers to scale back purchases - if not halt them entirely - in the near term."
The Treasury has set November 21 as the deadline for companies to wind down existing contracts, a step designed to limit immediate supply shocks. But refiners in both China and India have already begun reviewing contracts to avoid potential penalties. Indian Oil, Bharat Petroleum, Hindustan Petroleum, ONGC and private major Reliance Industries are among those most exposed, while China National Petroleum Corporation, which imports mainly via pipeline, is expected to proceed cautiously, analysts said.
Energy experts expect Beijing and New Delhi to seek alternative supplies from OPEC producers and U.S. exporters. "There is spare capacity within OPEC right now, especially Saudi Arabia," said John Kilduff, partner at Again Capital. "But the increased demand for the global non-sanctioned supply will raise prices."
Oil prices surged nearly 5% following the announcement. Brent crude jumped to $65.57 a barrel, its highest level in two weeks, while U.S. West Texas Intermediate climbed to $61.51. "This appears to imply that you cannot buy Russian crude oil regardless of the price," Kilduff said. "It's a blanket ban."
Ukraine's President Volodymyr Zelensky welcomed the sanctions, writing on X that they "are a clear signal that prolonging the war and spreading terror come at a cost." He added: "I thank @POTUS and the entire American team for this resolute and well-targeted decision."
But Moscow condemned the measures as hostile. Dmitry Medvedev, deputy chairman of Russia's Security Council, called the U.S. decision and Trump's cancellation of the summit an "act of war," saying the United States had become "an enemy" and that Russia could fight to victory in Ukraine without negotiating.
