OREANDA-NEWS  Chinese state-owned companies stopped buying Russian oil after the United States imposed sanctions against two Russian fuel giants. This was reported by Reuters, citing its own sources.

We are talking about PetroChina, Sinopec, CNOOC and Zhenhua Oil companies. There is evidence that they will refrain from purchasing Russian oil, at least in the short term, due to concerns about sanctions. It is noted that this happened just when information appeared that Indian refineries were going to drastically reduce imports of crude oil from Russia.

According to Reuters, a sharp drop in oil demand from the two largest consumers will put a strain on Moscow's revenues and force the world's leading importers to look for alternative sources of supply. And this, in turn, will result in a spike in global prices.

According to Elena Ustyuzhanina, Chief Researcher at the Russian Academy of Sciences, the main consequences of US sanctions against major Russian oil companies will be a drop in export earnings and a reduction in GDP.