EU takes aim at Chinese firms, third country exports to tighten Russia sanctions: Sources
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Rescuers working at the site of a residential area heavily damaged by a Russian missile strike in Zaporizhzhia, Ukraine, on May 3.
PHOTO: REUTERS
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BRUSSELS - The European Union’s executive body proposed blacklisting several Chinese companies and curbing exports to nations seen as involved in bypassing Russia trade restrictions under the latest set of sanctions against Moscow for the war against Ukraine.
The 27 EU member countries – which must all agree for new sanctions to be enacted – will have a first discussion on Wednesday on the proposal by the European Commission, diplomatic sources said on Monday.
The proposal focuses on combating circumvention of existing trade restrictions through third countries, the sources said, after the EU identified China, Turkey, the United Arab Emirates, as well as countries in Central Asia and the Caucasus as potential culprits.
Seven companies in China would be subject to an asset freeze in the EU, said diplomats familiar with the proposal, in what would be a first for the bloc to punish China over accusations of Beijing’s role
On Monday, Chinese Foreign Ministry spokesman Wang Wenbin said China urges the EU to avoid taking the “wrong path”, otherwise it will take firm action to safeguard its rights and interests.
The Financial Times reported on Monday that the firms involved were 3HC Semiconductors and King-Pai Technology based in China, as well as Sinno Electronics, Sigma Technology, Asia Pacific Links, Tordan Industry and Alpha Trading Investments in Hong Kong.
Among those added to the blacklist would be individuals deemed involved in deporting Ukrainian children and moving cultural goods to Russia from the war zone in Ukraine, the sources said.
In what would be the EU’s 11th package of sanctions against Russia since the country invaded Ukraine in February 2022, the bloc would introduce a new mechanism to cut its exports to third countries deemed involved in bypassing sanctions against Russia.
“The whole point would be to never use it, to go for diplomatic outreach first and offer technical assistance. Only as the last resort, we will have this threat hanging,” said one EU diplomat.
Some of the sources suggested discussions between member countries could be long and fraught, as the proposal risked upsetting economic and political ties, including with major powers.
“Member states will have many ideas on whether this is a good avenue to follow or not, how it would actually affect them,” said a second diplomatic source.
A spokesman for the European Commission confirmed that the proposal was sent out to member states and aimed at closing loopholes in Russia trade restrictions, but declined to give details.
Separately on Monday, Russia launched its biggest wave of drone strikes on Ukraine in months, escalating attacks in the run-up to its May 9 holiday celebrating the defeat of Nazi Germany in World War II. REUTERS
