Hours after Russian foreign minister Sergey Lavrov said on Monday that Russia and China relations are at their strongest level ever, Chinese companies like the state-run Sinopec Group has taken steps not to run afoul of western sanctions, news agency Reuters reported.
The Sinopec group backed out of a major petrochemical investment and a gas marketing venture in Russia, people familiar with the developments told news agency Reuters. The report said that Sinopec, which is Asia’s biggest oil refiner, backed out of a half-billion-dollar investment in a gas chemical plant and its plans to market Russian gas in China.
People familiar with the developments said that officials of Sinopec and two other oil giants were summoned by the Chinese ministry of foreign affairs earlier this month. The Chinese foreign ministry warned them against buying Russian assets and also asked them to ‘review their business ties with Russian partners and local operations’.
The move shows that Russia’s closest diplomatic ally is also wary of angering the US and the west by extending support to the Kremlin. The US has warned China since the onset of the war on Ukraine that it will suffer consequences if it helps Russia escape the effects of economic sanctions. China also refuted US media reports that it supplied arms and military support to Russia.
The US president Joe Biden said that China should understand that its economic future lies with the west and the US and not with Russia.
Beijing, however, clarified that it will maintain normal economic and trade exchanges with Russia and voiced opposition to the sanctions. It also chose not to directly condemn Moscow for its actions in Ukraine.
Three Chinese oil giants Sinopec , China National Petroleum Corp (CNPC) and China National Offshore Oil Corp (CNOOC) are assessing their positions on the billion-dollar investments they have committed to Russia. Sinopec has also stalled plans to build its $500 million new gas chemical plant in Russia. Sibur, Russia’s largest petrochemical producer was roped in to work with Sinopec in a 60:40 partnership. The pause came after Sinopec found out that Sibur minority shareholder and board member Gennady Timchenko was sanctioned by the US and its western allies.
Read the Latest News and Breaking News here
Comments
0 comment