China’s state-owned oil giants have suspended purchases of seaborne Russian oil following fresh US sanctions on Rosneft and Lukoil , Moscow’s oil producers, multiple trade sources told Reuters on Thursday.

The move by PetroChina, Sinopec, CNOOC and Zhenhua Oil marks a significant shift in one of Russia’s largest export markets and could further strain Moscow’s oil revenues while tightening global supply.

Revenue strain for Moscow

The suspension is expected to cause a sharp drop in oil demand from Russia’s customers forcing Moscow to seek alternative buyers and potentially driving up international crude prices.

While China imports roughly 1.4 million barrels per day (bpd) of Russian oil by sea, most of that is typically purchased by independent refiners, commonly referred to as “t

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