Reuters: Chinese oil company Sinopec is suspending its investments in Russia

The Chinese state-owned company Sinopec has decided to suspend talks on a major investment it plans to make in the petrochemical industry in Russia and on a plan to promote Russian gas in the Chinese market.

According to a Reuters report, the reason for this move is Beijing’s concern over the developments that are taking place due to the escalation of Western sanctions against Moscow for the Russian invasion of Ukraine and the consequences that they may have on the Chinese economy.

According to Reuters, in the background the Chinese government is expressing fears that Chinese companies may violate the sanctions and has asked them to be careful with their investments in Russia.

Following the Russian invasion, three Chinese state-owned energy giants – Sinopec, China National Petroleum Corp (CNPC) and China National Offshore Oil Corp (CNOOC) – assessed the impact of multibillion-dollar investment sanctions on Russia. sources familiar with the matter told Reuters.

“The companies will strictly follow Chinese foreign policy in this crisis. There is no room for companies to take new investment initiatives,” a state-owned oil company official said in a statement.

At the same time, the Chinese Foreign Ministry called on the executives of the three companies to reconsider their relations with their Russian partners and their activities in Russia and not to make hasty moves, buying Russian assets.

According to statements made by Joe Biden yesterday, China knows that its economic member is linked to the West, after warning Xi that Beijing may repent of supporting the Russian invasion of Ukraine.