China Snaps Up Discounted Russian Oil - Fuels Shift to Non-Dollar, Crypto Payments
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China Snaps Up Discounted Russian Oil – Fuels Shift to Non-Dollar, Crypto Payments



China has stepped into the vacuum left by India’s recent US trade deal, buying record volumes of discounted Russian crude as Moscow shifts supplies eastward.

What the data shows
– Ship-tracking and trader reports put Russian crude deliveries to China at about 2.07 million barrels per day in February — up from roughly 1.7 million bpd in January. Seaborne cargoes are due to load this month.
– Traders say Russia discounted the cargos by about $9–$11 per barrel, helping make them highly competitive.

Why this shift happened
– India curtailed purchases of Russian oil after agreeing to terms in a trade deal with the US; as part of that arrangement it agreed to source crude from Venezuela instead.
– With India pulling back, China has become Russia’s top oil customer, absorbing much of the excess supply.

Who’s buying
– Chinese refiners — including private independent refiners known as “teapots” — are taking record volumes of oil from Russia and other sanctioned suppliers. A senior Chinese trader noted that, in terms of processing quality and price, Russian crude has become relatively more attractive than Iranian barrels.
– China is reportedly cautious about buying Iranian crude because of concerns that a military confrontation could disrupt loadings, making Russian oil appear more reliable, according to a trader identified as Li.

Bigger-picture implications
– BRICS members are increasingly central to global oil flows: production surpluses, large consumer bases, and discounted, sanctioned barrels are reshaping trade patterns.
– The shift reinforces broader moves away from dollar-centric systems — exemplified by BRICS’ new Brazil-based payment initiative — and raises questions about alternative settlement rails. For crypto and payments watchers, the rerouting of energy trade highlights why some nations and firms are exploring non-dollar payments and digital/alternative transfer mechanisms, though use of such channels comes with legal and sanction-related risks.

Bottom line: Russia’s discounts plus China’s willingness to absorb more sanctioned crude have realigned short-term oil flows, giving Moscow a reliable customer in Beijing just as India steps back under its US trade commitments.

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