China's Urals Crude Imports Soar to Multi-Year Highs in January 2026 Amid Sanctions Shift

China's Urals Crude Imports Reach Record Levels

China's imports of Russian Urals crude surged to an estimated 405,000 barrels per day in January 2026, marking the highest level recorded since mid-2023. This significant increase, reported on January 27, reflects a notable shift in global oil trade dynamics, primarily driven by evolving Western sanctions and market adjustments.

Preliminary data from LSEG indicates that China is projected to receive approximately 1.5 million barrels per day of Russian oil via sea this month, a substantial rise from about 1.1 million barrels per day in December. Vortexa data also showed China's total seaborne Russian crude imports exceeding 1.5 million barrels per day in December 2025.

Impact of Western Sanctions and Market Dynamics

The surge in China's Urals crude imports is largely a consequence of tighter Western sanctions imposed on Russian oil sellers and shippers in late 2025. These measures, which targeted major energy entities like Rosneft and Lukoil, compelled Moscow to redirect its crude flows. This redirection led to wider discounts for Urals crude, with prices for China reportedly $10 to $12 per barrel below ICE Brent in late 2025, making it an attractive option for Chinese buyers.

Concurrently, major buyers such as India and Turkey significantly curtailed their purchases of Russian Urals crude. India, previously a leading importer of Urals, reduced its intake to below 1 million barrels per day in December, a notable drop from its 2025 average. Similarly, Turkey's Urals imports slipped to around 250,000 barrels per day in January. This reduction by other nations was influenced by stricter Western sanctions and an impending EU ban on fuels made from Russian-origin crude, which took effect in January 2026.

Strategic Procurement by Chinese Refiners

Chinese independent refiners, particularly those located in Shandong province, have been instrumental in absorbing the increased supply of discounted Urals crude. These refiners capitalized on the favorable pricing and fresh import quotas allocated for 2026. The shift towards increased Russian crude imports also serves China's strategic objective of diversifying its energy supply and providing a buffer against potential disruptions from alternative sources, such as declining Venezuelan oil supplies.