Three Largest Chinese Oil and Gas Companies Added to List of International Sponsors of War

The National Agency for Prevention of Corruption of Ukraine (NAPC) has added three major Chinese oil and gas companies to the list of international sponsors of the war. The companies in question are the China National Offshore Oil Corporation (CNOOC Group), China Petrochemical Corporation (Sinopec Group), and China National Petroleum Corporation (CNPC).

China National Petroleum Corporation is the largest Chinese national oil and gas corporation and one of the world's largest energy companies engaged in oil and gas extraction. The corporation's profit in 2022 doubled, reaching $21 billion USD, partly due to the global reduction in oil supplies, partially attributed to the war in Ukraine. The company has significant integration with major Russian companies in the oil and gas sector, as well as ties with the government of the aggressor state. By holding stakes in Russian companies, CNPC pays substantial taxes to the aggressor's budget, which contributes to sustaining the conflict. For example, in 2022, the income tax amount for "Yamal LNG" was approximately 80 billion roubles (or $1.14 billion USD).

In September 2022, "Gazprom" and CNPC agreed to switch to payments in national currencies (roubles and yuan), further bolstering and stabilizing the Russian rouble despite imposed sanctions.

Sinopec Group, the second-largest state-owned company in China, is involved in fossil fuel extraction and specializes in crude oil processing. In late March 2022, a representative of Sinopec stated that the Chinese state energy company would continue to purchase crude oil and gas from Russia, even if Western democracies increase sanctions in response to Russia's invasion of Ukraine.

CNOOC Group, the third-largest national oil company in China after CNPC and Sinopec, is the largest offshore oil and gas producer in China. Its subsidiary, CNOOC Limited, along with another Chinese company, CNPC, holds a 10% stake in the "Arctic LNG-2" project located on the Gydan Peninsula in the Russian Arctic region.

Since the start of Russia's full-scale invasion of Ukraine, the company has actively expanded its cooperation with Russia. In July 2023, the first liquefied natural gas (LNG) production line on a gravity-based floating platform, known as the "floating plant," of the "Arctic LNG-2" project was completed and launched.

Russian propaganda also places significant emphasis on the implementation of this project and in its media, noting that its realization serves as a "passport" abroad since liquefied gas is not subject to sanctions or other secondary restrictions.