EU proposes sanctions on Chinese firms supporting Russia's war effort

The European Union is considering sanctions against several Chinese companies accused of assisting Russian firms in developing attack drones used in the war against Ukraine.

These sanctions are part of broader efforts to increase pressure on Russia and its allies, including China, for supporting Moscow’s war effort, Caliber.Az reports citing foreign media.

According to documents obtained by Bloomberg, the European Commission is also exploring measures to impose restrictions on additional Russian oil tankers to limit Russia's ability to bypass existing sanctions.

These proposals are being discussed as Group of Seven (G7) foreign ministers meet in Italy, where they are expected to pledge further actions against China and other countries aiding Russia’s war. If approved, the sanctions would require unanimous support from all 27 EU member states. Some of the Chinese firms targeted by the EU have already been sanctioned by the US and the UK.

The proposed EU measures include adding a Chinese national linked to a company that has violated EU trade restrictions, a Hong Kong-based firm providing banned microelectronic components to Russian military companies, and North Korean defense officials involved in sending troops to assist Russia. Additionally, the EU is proposing to sanction over 50 individuals and nearly 30 entities, including Russian military manufacturers and Chinese companies accused of supplying key components for drones used in the war.

As part of its 15th sanctions package since Russia’s invasion of Ukraine, the EU is also targeting over 45 Russian oil tankers, seeking to restrict their access to European ports and services, in an effort to undermine Russia's oil revenue and enforcement of a price cap on Russian crude. Other sanctions would affect Russian firms and individuals linked to oil transportation, as well as entities facilitating the acquisition of banned technologies for weapons used in Ukraine.

The EU is also proposing trade restrictions on companies in various countries, including Russia, Serbia, Iran, India, Thailand, the UAE, China, and Hong Kong, involved in these activities. Lastly, the EU is looking into a mechanism to allow central securities depositories to unfreeze certain funds amid increased litigation in Russia.

By Vafa Guliyeva