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Rubio Warns Oil Sanctions on China Could Inflate Global Energy Costs

Targeting China’s oil refiners risks inflating costs for buyers by pushing processed Russian crude back into international markets.

US President Donald Trump and China's President Xi Jinping.
Peter Navarro, Senior Counselor for Trade and Manufacturing for U.S. President Donald Trump, speaks to the media outside the White House in Washington, D.C., U.S., April 30, 2025.  REUTERS/Evelyn Hockstein/ File Photo
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peter navarro

Overview

  • Rubio said Chinese refiners process large volumes of sanctioned Russian crude and export the resulting products into Europe and beyond.
  • He warned that enforcing secondary sanctions on such refiners could disrupt oil supply chains and drive up prices for international buyers.
  • The United States has hit India with tariffs as high as 50% over its Russian oil purchases while refraining from similar penalties on China.
  • European governments have privately raised objections to proposed 100% tariffs on China and India, reflecting divisions over the reach of U.S. sanction tactics.
  • Brussels has rolled out multiple sanctions packages—including price caps and export bans on third-country refined products—while affected refiners pursue legal challenges and adjust operations.