China has stepped up its imports of Russian and Iranian crude oil in early 2025, not in response to rising fuel demand but as part of a broader strategy to replenish domestic reserves.
This trend, reported by Reuters, reflects Beijing’s effort to secure discounted supplies from countries currently subject to enhanced US sanctions.
According to Chinese customs data reviewed by Reuters, crude oil imports reached 11.69 million barrels per day (bpd) in April. This marked a slight decrease from March’s 12.1 million bpd, but still represented a 7.5% increase year-on-year compared to April 2024, when imports stood at 10.88 million bpd. The March figure was the highest recorded since August 2023.
On a cumulative basis, China’s imports averaged 11.83 million bpd in the first four months of 2025, showing a modest 0.5% rise compared to the same period last year. However, analysts cited by Reuters suggest that this uptick is driven less by actual consumption and more by stockpiling activity, particularly involving discounted shipments from Russia and Iran.
The growth in import volumes coincides with intensified US sanctions on both oil-exporting nations. While previous restrictions have been in place for several years, additional measures introduced by the United States in early 2025 have targeted shipping companies and intermediaries involved in transporting sanctioned oil.
In March and April, China capitalised on the availability of attractively priced cargoes from these sanctioned producers. Reuters characterises the rise in crude purchases as a “bearish” rather than “bullish” indicator—pointing to a strategic move to build reserves rather than a signal of increased domestic fuel consumption.
Data from commodity analytics firm Kpler shows that China’s seaborne crude imports from Russia reached 1.22 million bpd in March and climbed to 1.38 million bpd in April—the highest level since October 2024. These volumes mark a sharp recovery from February, when Russian deliveries had dropped to 970,000 bpd, their lowest point in over two years. That decline followed new sanctions announced in January 2025 by the outgoing administration of former US President Joe Biden, which focused on vessels carrying Russian oil.
Iranian crude also featured prominently in China’s springtime procurement. Kpler estimates that Iranian oil deliveries surged to 1.39 million bpd in March, the highest since October, before falling back to 743,000 bpd in April. The April decline is attributed to renewed pressure from the administration of US President Donald Trump, who has reintroduced efforts to limit Iran’s nuclear programme by tightening enforcement of sanctions.
Reuters notes that it remains unclear how long Chinese refiners will maintain a cautious approach toward Iranian crude. The agency points to previous instances where Chinese importers eventually resumed purchases after identifying legal or logistical workarounds to sanctions regimes.
A similar pattern is emerging with Russian supplies. While February marked a temporary retreat in volumes, the recovery in March and April suggests Chinese buyers have again adapted to shifting restrictions, leveraging discounted barrels to bolster inventory.
Despite these increases, domestic consumption in China has yet to show a corresponding upward trend. The cautious nature of refiners and the broader macroeconomic environment—marked by slow post-COVID industrial recovery and ongoing structural challenges in the real estate sector—continue to suppress broader demand for fuel products.
China remains the world’s largest importer of crude oil, and its procurement patterns are closely monitored for signals of global economic and geopolitical shifts. Its growing reliance on sanctioned suppliers—particularly Iran and Russia—underscores Beijing’s willingness to prioritise energy security and cost-efficiency over alignment with Western-led sanction frameworks.
While the precise volume of China’s strategic reserves is not publicly disclosed, analysts widely believe that the country has sufficient capacity to absorb higher volumes of crude during periods of favourable pricing. The timing of recent purchases suggests a deliberate policy of accumulation, likely aimed at insulating the domestic market against future price volatility or supply disruption.
The long-term implications of China’s strategy remain uncertain. However, the continued flow of Russian and Iranian oil to Chinese ports despite US sanctions suggests that enforcement alone has limited impact on curbing trade when a major importer like China is willing to engage with sanctioned states through indirect or opaque channels.
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