China says energy trade with Russia is based on ‘mutual respect’

China assured this Monday that business with Russia in the energy sector is based on “mutual respect and benefit” after the European Union and the G7 imposed a barrel price cap on Russian oil.

“China and Russia have always cooperated in the energy sector on the basis of mutual respect and benefit,” Chinese Foreign Ministry spokeswoman Mao Ning said at a press conference.

The spokeswoman also said that oil is one of the “essential commodities” in the world, considering fossil fuels “essential” to secure the world’s energy supply.

“We believe that all parties should make constructive efforts to achieve this goal,” Mao added, when asked if Beijing would adhere to the agreement to cap Russian oil prices at $60 per barrel.

The European Union (EU), seven countries in the group of most industrialized countries (G7) and Australia agreed last week to introduce a price cap that they intend to prevent Russia from “benefiting from an aggressive war against Ukraine.”

Since the beginning of the war in February last year, sanctions against Russia by the United States and most European countries have hit many areas of the country’s economy.

China has taken advantage of its ambiguous stance in the conflict to boost Russian oil imports.

Moscow is now China’s largest oil supplier, surpassing Saudi Arabia last summer.

Russia has already stated that there will be no shortage of buyers for its oil and that it will redirect its crude oil exports to Asia.

Currently, Russian oil is sold on the market at a discount of about $20 against Brent, which is traded in London and is a benchmark for the European market.