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Formula One leader Max Verstappen was twice penalised for clashes with title rival Lando Norris and finished sixth.
It was Verstappen's first DNF (did not finish) since retiring from Albert Park in the 2022 race and ended his run of race wins at nine.
American Honda rider Ricky Brabec won the motorcycling category for the second time.
Spaniard Sainz was handed a 10-place grid penalty through no fault of his own after a metal drain cover came loose and wrecked his speeding car when it drove over it, forcing the cancellation of opening practice.
McLaren's Lando Norris and Mercedes' Lewis Hamilton completed the top three.
The 24-year-old Dutch driver took his 26th career win 0.9 of a second ahead of Spaniard Sainz, who closed the gap and set up a thrilling final chase thanks to a safety car deployment.
The Spaniard halted the session when he smashed head-on into the barriers at the Ascari chicane with just over half an hour remaining.
Campos Racing, who have teams in the Formula Two and Three support series, said in a statement on Thursday that their founder had passed away from "sudden coronary disease".
Australian Daniel Ricciardo will leave Renault and race for McLaren in 2021.
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