On Thursday, October 23, 2025, the European Union expanded its sanctions against Russia by including two Chinese refineries, Liaoyang Petrochemical and Shandong Yulong Petrochemical, along with Chinaoil Hong Kong, a trading subsidiary of PetroChina, in its 19th sanctions package. This action aims to undermine Russia’s ability to finance its war in Ukraine by targeting entities that have been significant buyers of Russian crude oil, contributing substantial revenue to Moscow.
The newly sanctioned Shandong Yulong refinery, with a capacity of 400,000 barrels per day, is one of the largest consumers of Russian oil in China, while the Liaoyang facility has a capacity of 200,000 barrels per day and integrates refining with petrochemical production. The EU’s move follows coordinated efforts with the Group of Seven nations to further diminish Russia’s oil and gas revenues.
Following previous sanctions from Britain, several suppliers to Yulong have already halted sales of Middle Eastern and Canadian oil to the refinery. The EU’s Official Journal noted that both refineries had purchased millions of barrels of Russia’s ESPO and Urals crude grades. Additionally, the EU sanctioned Tianjin Xishanfusheng International Trading Co., citing its role in aiding Russia to evade sanctions. This comprehensive approach underscores the EU’s commitment to cutting off funding channels for Russia amid the ongoing conflict.