EU plans sanctions on Chinese firms over alleged support for Russia

The European Union’s foreign policy service is proposing sanctions against four Chinese companies accused of supporting Russia’s war against Ukraine, according to documents seen by POLITICO.

The four firms are expected to be included in a new sanctions package that EU foreign ministers are due to approve at a meeting in Luxembourg on June 15, two EU officials said. The companies are alleged to assist Russia’s so-called shadow fleet, supply chemicals for its military, and deliver components used to manufacture attack drones.

The move is likely to heighten tensions between Brussels and Beijing as European Commission President Ursula von der Leyen seeks support from EU member states for stricter measures targeting subsidised Chinese imports. China said last week it would take “resolute countermeasures and effective steps to safeguard its own interests” if the EU imposed additional trade restrictions.

While the EU has sanctioned Chinese firms in previous rounds, the latest proposal signals a continued effort to target entities accused of enabling Russia, despite Beijing’s earlier warning of “consequences” in response to measures included in the bloc’s 20th sanctions package.

The issue is expected to feature in talks on Tuesday, June 2, when Trade Commissioner Maroš Šefčovič meets Chinese trade envoy Li Chenggang on the sidelines of an OECD ministerial meeting in Paris, according to Commission spokesperson Olof Gill.

The document, dated May 21, will form part of what officials described as a “mini-package” of sanctions.

It also recommends sanctions on subsidiaries of Russian oil company Lukoil, along with dozens of individuals and entities said to be supporting Russia’s war effort.

EU sanctions require unanimous approval from all 27 member states, and national ambassadors retain the ability to amend or remove specific provisions from the proposal.

The measures are part of what officials describe as a “rolling” sanctions approach, under which entities are added or removed depending on how Russia adapts its tactics to circumvent restrictions.

The proposal reflects Brussels’ strategy of intensifying pressure on Russia rather than pursuing direct negotiations, in an effort to capitalise on Ukraine’s battlefield gains and push Moscow toward serious talks.

Separately, EU countries are continuing discussions on a broader 21st sanctions package expected later this summer, which would take a more sectoral approach. One key proposal under consideration is to fix the price cap on Russian oil purchases, which is currently due to expire in July. Without an extension, the cap would rise automatically in line with global energy prices. Several countries are pushing to maintain the current level to limit Russia’s revenue.

A group of Nordic and Baltic countries is also advocating more sweeping measures against Russian energy companies, including Lukoil, Gazprom, Novatek and Rosneft, according to a separate document seen by POLITICO. The group is also calling for the EU to terminate all contracts with Russia’s nuclear sector.

The European Commission declined to comment on specific measures, saying: “We don’t comment on the details of upcoming sanctions packages. What we can say is that — as with all previous packages — our goal is to maximise economic pressure on Russia, including by introducing new measures to tackle circumvention.”

By Tamilla Hasanova