China's state-owned oil giants have suspended seaborne Russian crude purchases following new United States sanctions on Rosneft and Lukoil, Moscow's top two oil producers, reported Reuters.

Trade sources said PetroChina, Sinopec, CNOOC and Zhenhua Oil are avoiding Russian seaborne crude for now, citing concerns over potential exposure to US penalties.

The move coincides with Indian refiners, the largest buyers of Russian seaborne oil, preparing to significantly reduce imports from Moscow to comply with the sanctions imposed over Russia's invasion of Ukraine.

A simultaneous drop in demand from China and India, Russia's two biggest oil customers, is expected to pressure Moscow's oil revenues and prompt global buyers to seek alternative sources, potentially driving up international crude prices.