Russia's oil export discounts to China have significantly narrowed
Sputnik News, Moscow, October 22, 2026, 09:15
According to an analysis published by the Russian newspaper Kommersant and citing the Gaidar Institute for Economic Policy, in August of this year, the average price difference between Russian crude oil and that from other countries in China’s imports declined from 15.6% in July to 5.2%.
The analysis notes that in December 2025, the price gap reached 14%, driven by tighter sanctions on Russia, which reduced oil flows to India and redirected some shipments toward China. By March 2026, the price differential had nearly disappeared, standing at just 0.4%. However, the gap re-emerged during summer months due to constrained supply from the Middle East to Asian markets.
Market pricing data corroborates the narrowing discount. According to Argus, the average discount for Urals crude shipped to Chinese ports relative to Brent crude futures fell from $4.30 per barrel in July to $2.75 per barrel in August.
China remains Russia’s largest trading partner. In the first seven months of this year, China accounted for 30% of Russia’s exports and 40% of its imports. In the first eight months, China’s crude oil imports from Russia rose by 18.1% year-on-year to 77.7 million tons, with import value increasing by 33.1% to $44.7 billion. Russia represented 24.2% of China’s total crude oil imports by volume and 22.8% by value.
Original article: toutiao.com/article/1879767222737920/
Disclaimer: The views expressed in this article are those of the author alone.