China has raised a red flag over a potential fraud risk in relation to oil trades involving Russian traders.
The Chinese embassy in Russia has warned Chinese traders to be on alert when importing oil from their Russian counterparts.
A note published on the embassy’s website on Tuesday said that many offers from Russian traders during the coronavirus pandemic are fake.
It added that this has led to some Chinese buyers being defrauded.
The embassy said that the fake offers are characterised by extremely low prices for huge volumes, which are attractive to Chinese buyers.
Some Russian traders have tried to conclude their deals in the name of Russia state-owned Rosneft and Gazprom through personal emails, the embassy note said.
To clinch the deals with Chinese buyers, Russian traders have looked to sign letters of intent and place irrevocable corporate purchase orders without going through proper due diligence, the embassy said.