China’s spending on Russian oil and gas rises as coal revenue declines

Oil volumes rise 16.7%

China imported 57.28 million tonnes of Russian crude oil in January-June 2026, an increase of 16.7% from the same period of 2025, Pravda.ru reported, citing data from China’s General Administration of Customs. The value of those purchases climbed 31.1% to $33.13 billion. In the first half of 2025, shipments amounted to 49.11 million tonnes worth $25.27 billion.

The faster increase in value than in physical volume indicates that the average price paid for Russian crude was higher than a year earlier. Based on the reported totals, China bought an additional 8.17 million tonnes while spending $7.86 billion more. The figures reinforce China’s importance as a source of export revenue for Russian producers, although the ultimate effect on company earnings and Russia’s federal budget will also depend on global oil prices, tax calculations and settlement currencies.

Infrastructure supports refinery supply

Russian exports to China use several established routes, including the Eastern Siberia-Pacific Ocean pipeline, Far Eastern ports and the Kozmino terminal. The InfoTEK analytical center said competitive prices, reliable logistics and disruptions affecting supplies from Persian Gulf countries had made Russian crude a predictable base supply for Chinese refineries. ESPO and Urals grades are already familiar to Chinese processors and offer workable refining economics.

Oil-products market analyst Gennady Chernov said stable crude quality and dependable logistics remain priorities for Chinese refiners because they allow plants to schedule unit utilization without shutdowns or lost margins. This favors suppliers able to maintain regular flows and consistent specifications. For Russian producers and traders, the combination of pipeline and seaborne capacity also reduces dependence on a single route, while Chinese refiners gain flexibility in arranging deliveries to different plants.

Gas grows while coal weakens

China’s imports of Russian liquefied natural gas increased 27.8% by volume to 3.59 million tonnes. Their value, however, rose only 8.2% to $1.81 billion, pointing to a decline in the average contract price. The value of Russian pipeline gas deliveries reached $4.65 billion, although Chinese customs did not publish a physical volume. The oil and gas figures therefore show different pricing patterns: crude revenue grew faster than tonnage, while LNG tonnage expanded faster than spending.

Coal moved in the opposite direction. The value of Russian thermal-coal shipments to China fell 2.7% to $3.72 billion, while lignite revenue dropped 70.1% to $78 million. Combined coal earnings declined 7% to $3.79 billion. The divergence means stronger oil and gas receipts are offsetting weakness in coal rather than reflecting a uniform rise across Russian energy exports. Macroeconomist Artem Loginov said greater export revenue in yuan and rubles could reduce currency risks for Russian companies and lessen the budget’s dependence on dollar fluctuations. He cautioned that the final fiscal effect would still be determined by global prices and domestic taxation, including mineral extraction tax, additional income tax and excise duties.