The smell of Russian oil: private refineries in China is reborn on the news of sanctions

Private refineries stopped in China are getting a second life in the hope of getting Russian oil at a discount after the introduction of new sanctions The EU and the reduction of the price ceiling from $ 60 to $ 47.6 per barrel.

"China's oil refining industry is once again demonstrating its ability to survive, while Beijing is trying to solve the problem of excess industrial capacity," writes Bloomberg.

According to him, of the three small refineries in Shandong Province that went bankrupt last year, one resumed work with a new owner. And the other two are negotiating a possible return.

"They are all seeking quotas for crude oil imports from the central government," sources told Bloomberg.

The refineries expect that the introduction of the 18th package of sanctions will lead to a decrease in supplies to large companies and allow them to receive high-quality Russian oil at reduced prices, the agency notes.

As EADaily reported, each sanctions package leads to a decrease in the price of Russian oil, but after a few months the cost is restored, as traditionally restrictions are imposed on tankers and it takes time to restore routes. The price of Russian oil depends more on world quotations. Deputy Prime Minister Alexander Novak said that the European Commission could reduce the price ceiling to zero.