EU Mulls Sanctions on Chinese, Indian Firms
EU Mulls Sanctions on Chinese, Indian Firms
Chinese and Indian companies are about to be hit by sanctions because of their ties to Russia, reports say, European Union is considering sanctions on Chinese firms for aiding Russia’s war machine
UPDATES: The European Union wants to sanction three Chinese companies due to their ties to Russia, according to reports by Bloomberg and the Financial Times.
The European Union is looking to sanction Chinese firms that it believes have helped Russia circumvent Western penalties, looking to slap measures against these mainland China businesses for the first time since the war began, three EU officials told CNBC.
Russian president Vladimir Putin and Chinese leader Xi Jinping. Sergei Guneyev/AFP via Getty Images
Chinese and Indian companies are about to be hit by sanctions because of their ties to Russia, reports say
By George Glover, Business Insider
The European Union wants to sanction three Chinese companies due to their ties to Russia, according to reports by Bloomberg and the Financial Times.
It’s also sizing up a business based in India and firms from Hong Kong, Kazakhstan, Serbia, Sri Lanka, Turkey, and Thailand, the outlets said, citing a draft proposal that hasn’t been made public yet.
The EU reportedly wants to ban companies from doing business with the listed parties, which it believes could be aiding the Kremlin in its war in Ukraine.
Member states voting through the plan would mark the first time that the trading bloc has imposed restrictions on Chinese and Indian businesses since Russia invaded its neighbor in February 2022.
In the aftermath of that attack, the EU, the US, and other Western countries rushed to sanction Moscow, by cutting Russia’s banks out of the SWIFT payments system and capping oil prices. The EU alone has imposed 12 sanctions packages over the past two years.
Meanwhile, China and India are yet to roll out similar restrictions and have instead stepped up their purchases of Russian crude.
In April 2023, European Commission president Ursula von der Leyen traveled to Beijing to warn China’s leader Xi Jinping not to support Russia’s war efforts.
"This visit is taking place in a challenging and increasingly volatile context, in particular because of Russia's war of aggression against Ukraine," she said in a press conference. "China's position on this is crucial for the European Union."
"We also count on China not to provide any military equipment, directly or indirectly, to Russia. Because we all know, arming the aggressor would be against international law. And it would significantly harm our relationship," von der Leyen added.
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Grigory Sysoyev | AFP | Getty Images
European Union is considering sanctions on Chinese firms for aiding Russia’s war machine
By Silvia Amaro, CNBC
The European Union is looking to sanction Chinese firms that it believes have helped Russia circumvent Western penalties, looking to slap measures against these mainland China businesses for the first time since the war began, three EU officials told CNBC.
The 27-member bloc is working on a 13th package of sanctions in the wake of Russia’s full-scale invasion of Ukraine, which could be ready later this month to mark the second-year anniversary of the war.
One of the EU officials, who did not want to be named due to the sensitive nature of the talks, said: “Chinese companies and entities from other third countries, which are involved in supporting Russia to circumvent sanctions” will feature in the next round of measures levied against Russia for its war in Ukraine.
Another official said that the 27 EU ambassadors will discuss the proposal at a meeting on Wednesday, adding that “work is ongoing.”
The comments come after a report from Bloomberg said the sanctions proposal includes three companies based in China.
European officials have previously underlined the close relationship between Moscow and Beijing. Last month, European Commission President Ursula von der Leyen said at the World Economic Forum in Davos that “Russia’s failure is also economic. Sanctions have decoupled its economy from modern technology and innovation. Russia is now dependent on China.”
Data from China’s General Administration of Customs released in January showed that China’s trade relationship with Russia hit a new record high of $240 billion in 2023, according to Reuters. The figures showed increases in Russia’s purchases of Chinese cars and smartphones.
CNBC reported in January that Russia is still obtaining Western technology despite ongoing sanctions. China, Hong Kong, Turkey and the United Arab Emirates have been increasingly important in funneling critical components to Russia from western countries, according to the research.
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