China’s Newest Refinery Records Surge in Russian Oil Imports After UK Sanctions

China's newest and largest refinery, Shandong Yulong Petrochemical, is significantly increasing its imports of Russian oil to offset supply disruptions caused by recent UK and EU sanctions. The refinery, operating at over 90% capacity with a 400,000 barrel per day capacity, plans to receive approximately 15 shipments of Russian crude in November, mainly the ESPO blend along with Urals and Sokol grades. This surge represents a record volume for Yulong, reaching 370,000 to 405,000 barrels per day, nearly double its previous average. The increase follows the UK sanctioning Yulong on October 16, which led to cancellations of oil contracts from Middle Eastern and Canadian suppliers, creating a raw material shortage. Meanwhile, US and EU sanctions have also caused other major buyers like Chinese state-owned importers and Indian refineries to pause Russian oil purchases, pushing Russian export grades to seek new markets predominantly in Asia. The expanded role of Yulong reflects shifts in global oil trade dynamics amid mounting Western efforts to curb Russia's energy revenues.