Rosneft CEO Igor Sechin says disruption risks around the Persian Gulf are increasing the importance of strategic reserves, diversified energy supplies and alternative transport corridors, while reshaping the role of Russia-China cooperation in global energy markets.
Newszy: Vladivostok, Russia – The Hormuz crisis and growing pressure on energy supply routes from the Middle East have brought energy security, strategic reserves and alternative transport corridors to the forefront of global energy markets, Igor Sechin, Chief Executive Officer of Rosneft, said at the VIII Russia-China Energy Business Forum in Vladivostok.
Sechin said recent developments around the Persian Gulf demonstrated how disruptions along major energy routes can affect oil flows, prices and importing economies far beyond the region. Against this backdrop, he highlighted China’s response through strategic stockpiling, electrification and diversified supply sources, including its energy partnership with Russia.
He also outlined broader changes in global energy markets, including risks linked to geopolitical tensions, changing trade rules, technological transformation and the growing need for more resilient energy infrastructure.
Hormuz Crisis Highlights Energy Security Risks
China’s strategic oil reserves are estimated at 1.4 billion barrels. In 2026, China reduced oil imports by 5.5 million barrels per day. Sechin said experts estimate that without these measures, oil prices could have been another $30 per barrel higher.
According to Sechin, China was able to manage the impact of the Hormuz crisis through timely stockpiling, large-scale electrification and its partnership with Russia. He said China’s integrated energy system and transport electrification allowed consumers to shift toward alternatives following the decline in oil supplies from the Persian Gulf.
The crisis also highlighted the strategic importance of developing logistics routes that can complement traditional maritime corridors. Sechin said the Northern Sea Route can reduce delivery times by 1.5–2 times and cut costs by one-third. Through the special relationship between Russia and China, he said China has the opportunity to obtain priority access to the route.
Russia-China Energy Trade
Trade turnover between Russia and China increased by 26% in the first seven months of 2026 year-on-year. Russia remains China’s largest energy supplier, with a 22% share.
Russia has been China’s largest oil supplier for four consecutive years, with annual supplies exceeding 100 million tonnes. In the first seven months of 2026, Russia supplied 67 million tonnes, with its share of China’s oil imports reaching a record 23%.
Sechin estimated that the economic benefit to China from the greater efficiency of purchasing Russian oil compared with Middle Eastern alternatives has reached $27 billion since 2022.
Russia is also China’s largest gas supplier. By the end of 2025, Russian gas accounted for almost 30% of China’s natural gas imports, including 47% of pipeline gas imports and 14% of LNG imports.
China’s Energy Demand and Infrastructure
China accounts for around 30% of global industrial production, almost twice the combined share of the United States and European Union. It produces 54% of global steel, processes 85–90% of rare earth metals and has more than 70% of global renewable energy equipment manufacturing capacity.
China’s electricity consumption exceeded 10 trillion kWh in 2025, while installed generation capacity exceeded 4,000 GW. Renewable generation increased tenfold over the past decade, reaching 25% of total generation by the end of 2025.
China commissioned 162 GWh of new battery energy storage capacity in 2025, around half the global volume, and invests approximately $100 billion annually in electricity grids.
Nuclear Energy and New Technologies
China has 64 operating nuclear reactors and another 37 under construction. Russia-China cooperation includes four Russian-built units at the Tianwan Nuclear Power Plant, as well as new Tianwan and Xudapu units equipped with Russian reactors.
Russia also participated in the construction of China’s CFR-600 fast-neutron demonstration reactor and supplies up to 90% of China’s enriched uranium purchases. These supplies increased by 40% in 2025.
Strategic Partnership in a Changing Energy Market
Russia-China energy cooperation spans oil, gas and coal, nuclear energy, renewables, energy storage and electricity grids, critical metals, transport electrification and alternative logistics. Bilateral settlements are conducted almost entirely in rubles and yuan.
Against the backdrop of disruptions affecting traditional energy corridors, tariff disputes, US dollar volatility, rising government debt in Western countries and changes in the international trading environment, Sechin stressed the importance of risk management, diversified supplies, trust and complementarity in long-term energy partnerships.
He said the conditions for further development of the Russia-China strategic partnership have already been created and should be maintained and strengthened.
“In this race, we must win. Its outcome will determine the fate of our peoples. As they say in China, ‘The east wind prevails over the west wind,’” Sechin said.