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(Bloomberg) — President Donald Trump gave the world an early glimpse of just how loosely he was planning to enforce new US sanctions on Moscow when it comes to China, the single-largest buyer of Russian crude.
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In his high-profile meeting with Chinese leader Xi Jinping on Thursday, Trump said the issue didn’t even come up. “We didn’t really discuss the oil,” Trump said. “We discussed working together to see if we could get that war finished.”
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The lack of meaningful pressure on Beijing means oil will continue to be a major source of revenue for President Vladimir Putin’s war effort, despite Trump’s move to unveil his first sanctions on Russia last week — blacklisting state-run oil giant Rosneft PJSC and Lukoil PJSC, Russia’s biggest oil producers.
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“If Trump won’t raise Russian oil with Xi, it undermines the entire sanctions narrative — you can’t claim to be tough on Moscow while ignoring one of the largest buyers keeping their economy afloat,” said Brett Erickson, a sanctions expert and managing principal at Obsidian Risk Advisors. “Trump’s sanctions so far feel performative. If he’s unwilling to confront Xi on energy flows, then the enforcement side of this policy will remain a paper tiger.”
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While Trump’s sanctions initially jolted oil markets, declining to even raise the issue with Xi suggests Trump prioritized stabilizing US-China ties and securing what he called an “amazing” trade deal with the world’s second-largest economy over strict enforcement.
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Trump had initially said he would raise Chinese oil buying with Xi as part of a renewed bid to end the fighting in Ukraine after he helped secure a fragile truce in Gaza. Ukraine and its allies in Europe had called on Trump to lean on Xi to cut support for Russia’s ongoing invasion.
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After the meeting, Ukrainian President Volodymyr Zelenskiy struck an optimistic tone despite expressing hope that Trump and Xi could find agreement on curbing Russian energy revenue. In a post on X, he said oil sanctions were already causing “significant losses” and that “principled and consistent pressure” could still deprive Moscow of $50 billion per year.
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“It is important that China contribute to efforts aimed at stopping Russia’s ongoing attempts to expand and prolong the war,” Zelenskiy wrote.
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But applying significant pressure on Chinese buyers of Russian oil could have spurred intense retaliation from Beijing, imperiling efforts for a broader deal.
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“Given they had so much to get through in a relatively short period, it’s not surprising this was not a major focus,” said Chris Kennedy, a senior geo-economics analyst at Bloomberg Economics. “In an escalation scenario, China would probably pull multiple levers.”
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China has been a vital lifeline for Moscow’s energy industry as Putin’s grinding war in Ukraine prompted rounds of western sanctions. While China has maintained it does not recognize unilateral US restrictions, its larger companies are wary of getting tangled in secondary sanctions and fear losing access to US financial markets.
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