New Delhi, Feb 4 (NationPress) China’s approach to acquiring oil at significantly reduced prices from countries under sanctions, such as Venezuela, Iran, and Russia, is encountering serious complications due to escalating geopolitical tensions affecting these nations.

Approximately 40 percent of China's crude oil imports derive from a mix of Russia, Iran, and Venezuela. This is a notable proportion, particularly as these sources are linked to sanctions, political turmoil, and broader geopolitical risks, as highlighted in an article from The Diplomat.

Iran is currently experiencing one of its most extensive periods of public dissent, spurred by a profound economic crisis characterized by skyrocketing inflation and a rising cost of living for its citizens.

The previous administration's ousting of Venezuela’s President Nicolas Maduro and the extensive seizure of tankers have severely disrupted China's access to this affordable oil source.

Venezuela, which boasts the world’s largest proven crude oil reserves along with vast quantities of gold, diamonds, and other natural resources, has found a dependable buyer in China. In recent years, China has acquired up to 80 percent of Venezuela's oil exports at discounted prices, especially as Western sanctions have dramatically reduced the country’s oil exports to the U.S. and Europe.

“Acquiring oil from pariah states at discounted rates has significantly aided China, supporting its industrial growth strategy. However, with Maduro’s removal, this model appears increasingly precarious. What initially seemed like a savvy avoidance of Western sanctions is now at risk of becoming a liability for China, revealing that regime risk, rather than supply scarcity, is now its primary energy vulnerability,” states Nik Foster, a non-resident fellow at the Atlantic Council's China Hub and former deputy China adviser for USAID.

Venezuela is not the sole contentious source of China’s crude oil. Over the years, Beijing has quietly developed an alternative supply network centered around the political isolation of various pariah states, including Iran and Russia. Following the invasion of Ukraine, Russian crude became China’s largest single source of imports. Iranian oil, accounting for approximately 14 percent of China's crude oil imports, continues to navigate global sanctions enforcement, frequently being rebranded as Malaysian oil. Venezuelan oil has also reached Chinese ports via shadow tankers, sometimes misidentified as crude oil from Brazil, the article noted further.