The state-run Sinopec Group realised a senior figure at Sibur
was an ally of Vladimir Putin and has therefore decided to press hold on plans
A
Chinese state-run oil and gas company has cancelled half a billion dollars of
investment out of Russia to dodge sanctions.
The
state-run Sinopec Group hit pause on plans to market Russian gas in China after
realising that a senior figure at Russia’s Sibur was a long-term ally of
Vladimir Putin.
Gennady Timchenko, an investor and board member at Sibur, had
already been sanctioned
by the West and is connected to other billionaires with ties to the
Russian president, according to Reuters.
The
move marks a hardening in China’s policy towards Russia amid the invasion, with
which it has maintained regular trade amid a slew of sanctions by the West.
China
has leaned towards Russia in the conflict, declining to call out
its actions and endorsing its complaints about Nato’s expansion eastward.
But the
Chinese government is said to be concerned about facing sanctions itself and is
encouraging companies to urr on the side of caution when dealing with Russia.
Since
the invasion on Feb 24, China’s largest energy companies have been working to
assess the impact on the billions of dollars worth of investment they have in
Russia.
According
to reports, officials from China’s three biggest energy companies - Sinopec,
China National Petroleum Corp (CNPC) and China National Offshore Oil Corp
(CNOOC) - were summoned by the Ministry of Foreign Affairs to evaluate their
connections to Russia.
The
energy giants were urged to handle the situation sensitively.
“Companies
will rigidly follow Beijing's foreign policy in this crisis,” an executive at
Sinopec told Reuters. “There's no room whatsoever for companies to take any
initiatives in terms of new investment.”
The
Ministry of Foreign Affairs said that China has the “right to carry out normal
economic and trade cooperation in various fields with other countries across
the world”.
Earlier
this week Joe Biden, the US president, said that China is aware of the fact
that its economic future is linked to the West.
He warned Xi Jinping that China may come to regret backing
Russia in the conflict.
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