Il Russian oil moves from Europe to China despite the sanctions imposed by Western countries for the war in Ukraine. There Russia it has in fact become the first oil supplier of China who buys at low prices and at discounted prices. In the same scenario, a shocking announcement comes from Germany: Berlin will turn coal power plants back on to compensate for the reduction in gas deliveries by Russia.
Russian oil moves: Russia is China's top supplier
According to data released by the General Administration of Chinese Customs, in the month of May China imported 8,42 million tons of crude oil from Russia, almost 2 million barrels per day. Figures that represent a 55% increase over what was purchased a year ago and 25% over the 1,59 million barrels per day delivered in April. All with deep discounts on prices after Western oil companies withdrew from the market due to the sanctions imposed for the war in Ukraine. Price cuts peaked at 30%, helping Moscow keep cash flows adequate during the war in Ukraine. According to calculations, thanks to oil exports, only in the month of May Russia raised $20 billion.
Moscow has therefore officially become China's top oil supplier, unseating Saudi Arabia which sold 7,82 million tons of oil to Beijing in May, 1,84 million barrels a day, down 15% from 2,17 million barrels a day. It should also be underlined that, from the data of the Customs Administration, it emerged that the Chinese imports from Iran they stood at 260 thousand tons: despite the US sanctions on Tehran, China continued to buy Iranian crude, usually passed off as supplies from other countries, equal to about 7% of its needs.
In total, from all its suppliers, in May China imported 10,8 million barrels a day of oil, versus the 2021 average of 10,3 million.
Germany restarts coal-fired power plants to make up for gas shortages
Meanwhile, to make up for the shortage of gas supplies from Russia, the Germany has decided to launch a contingency plan to ensure its energy stability. Among the different measures announced, a greater use of the carbon. “To reduce gas consumption, less gas needs to be used to generate electricity. Instead, coal-fired power plants will have to be used more,” the economy ministry said in a statement.
The government is reacting to this week's announcements by several cuts in gas supplies by Gazprom via Nord Stream, against the backdrop of a showdown between Western countries and Russia in the context of the war in Ukraine. "It is a bitter choice, but it is essential to reduce gas consumption", continued the minister of the ecological economy Robert Habeck.
Despite this, the long-term strategy remains unchanged: "Germany maintains the objective of exiting coal by 2030", said the spokesman for the Minister of Economy, Gabriel Haufe, at a press conference in Berlin "This objective is not at all in question. And it's more important than ever,” he concluded.
