EXCLUSIVE China's Sinopec pauses Russia projects, Beijing wary of sanctions

[Uncle Joe]

March 25 (Reuters) - China's state-run Sinopec Group has suspended talks for a major petrochemical investment and a gas marketing venture in Russia, sources told Reuters, heeding a government call for caution as sanctions mount over the invasion of Ukraine.

The move by Asia's biggest oil refiner to hit the brakes on a potentially half-billion-dollar investment in a gas chemical plant and a venture to market Russian gas in China highlights the risks, even to Russia's most important diplomatic partner, of unexpectedly heavy Western-led sanctions.

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"Companies will rigidly follow Beijing's foreign policy in this crisis," said an executive at a state oil company. "There's no room whatsoever for companies to take any initiatives in terms of new investment."

The Ministry of Foreign Affairs this month summoned officials from the three energy companies to review their business ties with Russian partners and local operations, two sources with knowledge of the meeting said. One said the ministry urged them not to make any rash moves buying Russian assets.

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https://www.reuters.com/business/energy/exclusive-chinas-sinopec-pauses-russia-projects-beijing-wary-sanctions-sources-2022-03-25/

[C_U_L8R]

1. Sanctions or not, Russia has proven itself untrustworthy.

No one wants to do business with that.