Buyer and Supplier: How China Sustains Russia’s War

Chinese buyers are locking up Russian oil for October and November, and Indian refiners are paying the price. According to Reuters, Chinese buyers are booking Russian cargoes in advance and offering firmer prices. That leaves Indian refiners with tighter Russian supplies for October-November. Russian crude arrivals in India were expected to fall to around 1.75 million barrels per day in September, down from roughly 2.1 million in August. Refiners squeezed out of those cargoes are being pushed toward more expensive supplies from the Middle East and North Africa.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. The episode shows how far the balance has shifted since 2022. Sanctions, export controls and the loss of European markets cut off many of Russia’s traditional sources of revenue, technology and industrial inputs. They did not end Russia’s economic ties. They pushed Moscow to redirect its trade toward a smaller group of Asian partners, and China has become the most important of them. China matters the most to the Russian war economy for two reasons. It buys large amounts of Russian energy, and it supplies the machinery, components and materials Russia needs to sustain military production. The two countries now depend on each other, but the balance increasingly favors Beijing. Russia has vast energy and industrial resources. Turning them into revenue and weapons, however, relies more and more on Chinese markets, supply chains and manufactured goods. China has more room to maneuver. It can diversify its energy suppliers and has a wider range of international economic partners. Russia’s dependence on China therefore has two connected sides: China as a major market for Russian energy, and China as an enabler of Russia’s military-industrial complex. Together, they show that the post-2022 economic order has not simply weakened Russia. It has also pushed Moscow into a deeper and more lopsided relationship with Beijing. Other Topics of Interest Kremlin Confirms Lukoil Negotiations With Washington Moscow says Lukoil’s $22 billion overseas assets are under discussion as the US extends authorization for sale negotiations. Russia’s Growing Energy Dependence on China Russia’s pivot away from European energy markets has made China central to its wartime economy. The link is strongest in crude oil. According to the Centre for Research on Energy and Clean Air (CREA), China took around 50% of Russia’s crude oil exports between December 2022 and August 2026, making it by far the largest single buyer. It also absorbed roughly 37% of Russia’s coal exports over the same period. By August 2026, China accounted for approximately 51% of Russia’s fossil-fuel export revenues from its five largest importing countries, worth around $8.4 billion. China is no longer just an important customer. It has become one of the main external markets that lets Moscow turn hydrocarbons into cash and support its wartime economy. This gives China growing influence over the price, volume and terms on which Russia can sell its energy. That influence became visible in September 2026, when Chinese demand for Russian crude rose amid disruptions to Middle Eastern supplies. Chinese buyers were not just absorbing extra Russian production. They were competing directly with other major Asian buyers and shaping the prices Russia receives. China has also helped solve one of Russia’s central economic problems after losing much of its European market in 2022: finding buyers large enough to replace it. Russia remains a major energy producer, but that output is only useful to the Kremlin if it can be shipped, sold and converted into hard currency or other resources. China offers an outlet at a scale few other countries can match. In August, crude oil made up roughly 70% of China’s purchases of Russian fossil fuels. Pipeline gas, liquified natural gas (LNG), coal and oil products accounted for the rest. China’s role therefore spans across several major parts of Russia’s energy-export system, not just one commodity. This creates a clear imbalance. Russia has the resources, but China has the depth of demand needed to absorb them. If Chinese demand weakens, Moscow has few comparable markets to turn to. China, by contrast, can draw on other suppliers and adjust its purchases to prices and geopolitical conditions. Reuters’ September reporting offers a concrete example. When Chinese buyers began booking Russian cargoes earlier and paying firmer prices, Indian refiners were pushed toward more expensive supplies from the Middle East and North Africa. The unintended consequences of the Lindsey Graham Bill The newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 allows President Trump to impose tariffs of up to 100% on the largest buyers of Russian oil and gas, which could include both China and India. On paper, the law puts the two countries under the same pressure. In practice, there is reason to think Washington may apply it more forcefully against India than against China. India is deeply tied to the US market and relies heavily on American demand for its exports. China is the main US strategic rival and has far greater economic and geopolitical capacity to hit back. Washington may have more leverage over India precisely because India has more to lose if its access to the American market deteriorates. Whether the United States will treat China differently remains uncertain. Suppose India is pressed to cut its Russian crude purchases while China keeps absorbing a large share of the oil Europe no longer buys. Moscow would then rely even more on Chinese demand. US pressure meant to reduce Russia’s energy revenues could have an unintended effect: it could concentrate Russia’s remaining energy trade around China and strengthen Beijing’s hand in setting the terms on which Russia sells its resources. China’s dominance should not be overstated, though. CREA’s data show that the European Union still took a substantial share of Russian LNG exports through August 2026. Turkey also remained an important destination for Russian oil products and pipeline gas. China’s position is strongest in specific segments, above all crude oil and coal, and not across every category of Russian energy exports. China: the enabler of Russia’s military-industrial complex China’s importance to Russia’s war effort shows up less in finished weapons than in the machinery, materials and components that make weapons production possible. Across Russia’s military-industrial complex, Chinese inputs are filling gaps created by Western sanctions and export controls. The supply relationship reaches deep into the foundations of Russia’s defense industry. The scale is striking. China supplied around 62% of the computer numerical control (CNC) machines, components and consumables Russia imported between January 2023 and July 2024. These are not peripheral products. CNC machines are essential for the precision manufacturing of missiles, drones, artillery and other weapons. China also accounted for around 70% of Russia’s machine-tool imports in late 2023. US assessments cited by Newsweek found that roughly 90% of Russia’s microelectronics imports in 2023 came from China. The pattern extends to aviation. In 2024, China supplied about 85% of Russia’s imported aircraft tires, worth roughly $10.3 million. A component that seems mundane can matter strategically when it keeps combat aircraft flying. The Economic Security Council of Ukraine notes that Russian military aviation operates at such a high tempo that tires on aircraft like the Su-34 and Su-35S may need frequent replacement. China also supplies other industrial inputs, including aramid fibers and rubber. Russia’s drone production offers perhaps the clearest example. Shipping documents reported by Politico indicate that a Chinese state-owned company supplied 46 tons of PAN precursor, a material used to make high-strength carbon fiber, to Alabuga-Volokno. This Russian producer is linked to the manufacture of Geran drones. According to weapons expert David Albright, the shipment could supply enough material for up to 1,300 drones. The documents reportedly classified the material as a civilian synthetic fiber, not a dual-use product. That raises concerns about how such trade can slip past existing export controls. Together, these cases point to a broader shift in Russia’s wartime supply chain. China is not just a source of consumer goods or a trading partner that props up Russia’s wider economy. Chinese companies supply parts of the industrial base Russia needs to make, maintain and replenish its weapons. That includes machine tools, microelectronics, raw materials and other dual-use goods. These goods may have civilian uses, but they become strategically important once they enter military production. This also exposes a central weakness in the sanctions regime. Restricting direct Western exports to Russia works less well when the same technology or material can reach Russian firms through third countries or Chinese intermediaries. An unequal partnership China’s part in sustaining Russia’s wartime economy goes well beyond that of a major trading partner. In energy, Chinese demand gives Russia a critical outlet for crude oil and other fossil fuels it can no longer sell to Europe at the same scale. At the same time, Chinese machinery, microelectronics, industrial materials and other dual-use goods help Russia sustain its military-industrial complex. China has become critical to the flow of revenues that finance Russia’s war and to the industrial capabilities that let it keep fighting. The dependence is also lopsided. Russia needs Chinese markets and supply chains to offset Western sanctions. China has more access to alternative energy suppliers and can adjust its engagement to its own economic and strategic interests. The US-China Economic and Security Review Commission’s 2025 report puts the asymmetry even more starkly: Russia depends on China for about 34% of its external trade, compared with only 4% for China. If Western pressure leads other major buyers, particularly India, to cut their purchases of Russian energy while Chinese demand holds up, Russia’s reliance on China could deepen, further undermining the very essence of the existing sanctions regime.