[Archyde.com]–China’s state-owned oil and gas giant, Sinopec Group, has terminated talks on Russia’s large-scale petrochemical investment and gas sales business, sources said. It is possible that it responded to the Chinese government’s call as Western sanctions over Russia’s invasion of Ukraine were tightened.
Synopek has suspended talks to invest up to $ 500 million in a new gas and chemical plant in Russia, according to people familiar with the matter. Sinopek was planning to partner with Russian petrochemical giant Ciboure, but said it had suspended talks following Ciboure’s minority shareholder and director Gennaji Timchenko was designated as a target for sanctions in Western countries. ..
China’s three major energy giants, PetroChina, and China National Offshore Oil Corporation (CNOOC) are examining the impact of sanctions introduced by Western countries following Russia’s invasion of Ukraine.
Under these circumstances, the Ministry of Foreign Affairs of China called on the executives of three companies earlier this month and requested that they review their business relationships with Russian partners and local businesses. He said he urged him not to take careless actions such as buying Russian assets.
“In this crisis, companies strictly follow the Chinese government’s foreign policy,” said an executive at a state-owned oil company. “There is no room for companies to take the initiative in new investment.”
No comments have been received from China Petrochemical and others on this matter.