Why did Sinopec stop the negotiation of two cooperation projects with Russia?

Following the Chinese government’s admonition to proceed with caution, Sinopec halted negotiations on two cooperation projects in Russia, a sign that some Chinese companies are re-examining business cooperation in Russia amid tougher Western sanctions against Russia

Sinopec has suspended a US$500 million (S$679 million) investment in a gas-to-chemicals plant and a joint venture to sell Russian natural gas in China, Reuters reported, citing sources

Sinopec was originally scheduled to cooperate with Sibur, Russia's largest petrochemical group, to develop a project similar to the $10 billion Amur gas and chemical park in eastern Siberia, with Sinopec and Sibur holding 40% and 60% of the shares respectively.

However, Sinopec halted the project after realizing that Timchenko, a minority shareholder and board member of Sibur, had been sanctioned by the West

Separately, Sinopec suspended talks on a joint venture with Russian gas producer Novatek to market Russian gas to China because one of Novatek's shareholders, Sberbank, is also on the U.

China's three state-run energy giants Sinopec, PetroChina and CNOOC have been assessing the impact of a string of Western sanctions on their investments in Russia following Russia's military action against Ukraine, according to people familiar with the matter

The Ministry of Foreign Affairs urges the three major state-owned enterprises

Don't buy Russian assets lightly

Although Beijing has repeatedly reiterated its anti-sanction stance and said it will maintain normal economic and trade exchanges with Russia, behind the scenes, Chinese companies are being urged to be cautious about investing in Russia

In addition to energy giants, other Chinese companies are exploring options to comply with U.

“Chinese companies will comply with U.