Beijing and Moscow are in talks on an oil deal as China seeks to fill its reserves with cheap Russian crude, a report says

China is in talks with Moscow to buy cheap Russian oil, according to a report.

People with knowledge of the situation told the newswire that discussions between the two have been taking place at government level with limited involvement from oil firms.

The volume of crude has not been determined and a deal is not certain to be signed, one source said.

China and India have been able to buy Russian crude at cheaper prices because of the sanctions imposed against Russia.

The US banned shipments of crude oil and refined products in early March, while the EU plans to ban all Russian imports by the end of the year.

According to Chinese government data, China is the world's largest crude importer and the biggest buyer of Russian oil.

Even though it is consuming less, it is looking to build its reserves even though it is not consuming as much.

Jane Xie, a senior oil analyst at data and analytics firm Kpler told the newswire that there is still room to replenish stocks.

The Chinese foreign ministry did not reply immediately.