China targets record imports of Russian oil in March

According to Kpler, a company that analyses global commodity flows, China is set to break its record for oil purchases from Russia this month. Based on monitoring tankers carrying Russian oil, it is expected that China will receive an average of 1.7 million barrels of oil per day throughout the first month of spring.
A new record was achieved due to a significant increase in Chinese refineries' imports of Sokol oil, which will triple compared to February and reach 379 thousand barrels per day.

China, along with India, has become the primary market for the Russian oil industry. Due to sanctions starting in 2023, the industry has redirected oil flows from west to east, towards Asia. Sokol brand oil is shipped from the Far Eastern Sokol oil loading terminal, from which it derives its name. Chinese oil refiners are not deterred by secondary US sanctions or sanctions from their allies.
In March, not only Sokol but also other Russian oil brands will set records. For instance, ESPO oil (ESPO) is expected to reach a record of 882 thousand barrels per day, the highest since January 2023, according to economists and Kpler analysts.

The concentration of tankers carrying Sokol oil, originally intended for Indians, off the coast of Singapore and South Korea is gradually decreasing, thanks to Chinese refiners. In mid-February, approximately fifty tankers carrying 'unnecessary' Sokol oil, totalling around 18 million barrels of Russian oil bound for India, were gathered in the Singapore and South Korea area. As a result, Russian oil exports to India decreased by 420 thousand barrels per day in February.

However, after a two-month break, India has now resumed importing Russian Sokol grade oil. In February 2024, two Indian refineries received delivery of the light, sweet crude, according to industry officials and ship tracking data cited by Reuters.
In 2023, Indian state-owned refineries had to stop purchasing Sokol oil after the government advised them not to use Chinese yuan to pay for Russian oil. This resulted in over 10 million barrels of unsold Sokol oil being stored offshore.

The Hindustan Petroleum Corp (HPCL.NS) began purchasing Sokol oil after this incident and will pay for the shipment in UAE dirhams, according to industry sources. Additionally, Nayara Energy, a private refinery, received a shipment of Sokol oil in February.