In 2023, Russia surpassed Saudi Arabia to become the largest supplier of crude oil to China, the world's largest crude importer, which has defied Western sanctions to purchase large quantities of discounted oil for its processing facilities. Chinese customs data showed that Russia shipped a record 107.02 million metric tons of crude oil to China last year, equivalent to 2.14 million barrels per day, significantly more than its imports from other major suppliers such as Saudi Arabia and Iraq.
Imports from Saudi Arabia, which was previously China's largest supplier, fell by 1.8% to 85.96 million tons, as the Middle Eastern oil giant lost market share to cheaper Russian crude. The surge in demand from Chinese and Indian refineries for discounted oil has boosted the price of Russian ESPO crude in 2023, surpassing the price cap per barrel imposed by the G7 in December 2022, thanks to alternative shipping and insurance options to circumvent sanctions. Chinese refiners are turning to intermediaries to manage insurance and shipping for Russian crude to avoid violating Western sanctions.