US Treasury Secretary Scott Bessent stated on Tuesday that he warned Chinese partners that continuing to purchase Russian oil, which is under sanctions, will lead to increased tariffs due to the adoption of a corresponding law by Congress. In response, Beijing stated that it will protect its energy sovereignty.
As Reuters writes, concluding two-day US-China trade talks in Stockholm, Bessent said that he also expressed US dissatisfaction over China's continued purchases of Iranian oil, which is under sanctions, and the sale of dual-use technology goods to Russia worth more than $15 billion, which are used in the Kremlin's war against Ukraine.
According to Bessent, the adoption of a law by the US Congress allowing Trump to impose tariffs of up to 500% on countries purchasing Russian oil under sanctions will prompt US allies to take similar steps to block Russia's access to energy resources.
Chinese officials responded that China is a sovereign state with energy needs, and oil purchases will be based on the country's internal policy. "The Chinese take their sovereignty very seriously. We do not want to infringe on it, so they prefer to pay a 100% tariff," Bessent concluded.
China remains the largest buyer of Russian oil—about 2 million barrels per day, followed by India and Turkey.
JP Morgan analysts believe that while China is unlikely to comply with US sanctions, India will, which could affect 2.3 million barrels per day of Russian oil exports.
On Monday, Trump shortened the deadline for Moscow to make progress in reaching a peace agreement on Ukraine, otherwise, within 10-12 days, secondary tariffs of 100% will be imposed on its oil, reflecting his growing frustration with Russia's actions. On Tuesday, the deadline was shortened to 10 days. "Therefore, I think that everyone who buys Russian oil under sanctions should be prepared for this," Bessent said at a press conference.
Following these statements, oil prices rose by more than 3%. Brent futures jumped to $72.51 per barrel, and WTI to $69.21, reaching highs since June 20. By morning, prices stabilized amid anticipation of further developments.
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