China rushes on cheap Russian oil as Western supplies dry up Business

The increase in purchases by the Kremlin ally threatens to undermine Western sanctions aimed at cutting off Moscow’s revenue.

US President Joe Biden has said oil embargoes would target a “main artery of the Russian economy”, but China’s purchases suggest its energy giants are adjusting to sanctions even as Moscow faces a huge recession.

Rising energy prices also risk tipping Western economies into recession as households are squeezed by soaring costs.

Mr Putin claimed last week that sanctions were proving “more damaging” to the countries that impose them. However, economists expect the Russian economy to suffer a two-year recession.

Analysts expect oil prices to remain high as Chinese demand rebounds from the shutdowns.

Mark Haefele, chief investment officer at UBS, said: “Demand for rough from China, the world’s largest importer, is expected to slowly recover as mobility restrictions are eased.

“Crude supply is expected to remain tight. A promise from OPEC+ to increase production is unlikely to lead to a significant increase in global supply, as the group is already struggling to meet existing production targets.