Shandong Yulong Petrochemical is a large, modern Chinese oil and gas company with a major refinery and petrochemical complex in Yantai, Shandong Province. The company is a significant purchaser of Russian crude oil but has recently been subject to sanctions from the EU and the UK, which has affected its oil supply chain. In response to the supply gap caused by sanctions and to manage its operations, Yulong has been increasing its purchases of Russian oil and also seeking alternative grades from other regions, such as West Africa.
China's Shandong Yulong Petrochemical is ramping up imports of Russian oil to make up for supply cancellations after Britain placed sanctions on the refiner over its Russian crude purchases. Sinopec and PetroChina Co. are staying away, having canceled some Russian cargoes after U.S. sanctions on Rosneft and Lukoil last month. Smaller private refiners, known as “dummies,” are also holding back, fearing similar penalties, as is Shandong Yulong Petrochemical Co., which was recently blacklisted by the United Kingdom and the European Union.