Refrence to bloom Berg. Chinese oil refiners, ranging between state-owned oil giants to private teapot processors, are making fewer crude purchases of Russians in the aftermath of new Western sanctions on the top energy companies in Moscow as well as on their customers.
Significant participants such as Sinopec and PetroChina have also canceled several cargoes of Rosneft PJSC and Lukoil PJSC and opted to remain wary as the latest U.S. sanctions limited actions last month.

Even Private Refiners Retaliate.

Smaller independent refiners in the province of Shandong, popularly known as teapots, are also withdrawing on Russian exports. These companies fear the possibility of such penalties as Shandong Yulong Petrochemical Co. that has recently been blacklisted by the UK and the European Union. Their reluctance has brought about serious interruptions in the previously booming trade between Russia and China.

ESPO Crude Prices Fall as Buyers Back Out.

The sanctions have especially affected the ESPO crude which is one of the most demanded oil grades in Russia. An estimated 400,000 barrels per day (about 45% of all oil imported by China to date) is currently impacted by the strike by the buyers (Rystad Energy).
Consequently, the ESPO prices have reduced drastically, which underlines the rising uncertainty regarding the oil exports in Russia.

The Discounts will not compensate the impact of the sanctions on Russia.

Even though Russia is the largest oil supplier to China, its discounted oil can no longer be used in the state of full to counter the risk posed by the sanctions. The U.S and its allied powers are increasing their bid to cut down on the energy revenues of Moscow so as to weaken its capacity to fund the war in Ukraine. This clenching noose is straining the Russian exporters as well as its foreign clients.

China Shops Alternative Suppliers.

The largest importer of crude in the world, China, is likely to soon switch to other suppliers in order to offset the deficit. The trade truce between Beijing and Washington that was achieved during a meeting between President Xi Jinping and Donald Trump might open new horizons to the U.S. oil exports to China.
This would be a major change in the international oil market and it would favor the oil producers who aspire to increase their portion in the Asian energy market.

Russia Has Not Strong Silver Linings.

Although Russia is becoming increasingly isolated, companies already under sanctions are not ready to support it much. An example of these is the blacklisted Yulong Petrochemical that has been buying more Russian crude than before due to having been cut off by the western suppliers. These refiners are the few remaining lifelines of Moscow in Asia because there is a lack of alternatives to them.

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