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EU sanctions must be supported by all member states to be adopted and may be subject to change by then.
The European Union has proposed new trade restrictions on about 20 companies, including three based in China, suspected of supporting Russia’s war effort in Ukraine.
If adopted, it would be the first time the EU has imposed restrictions on mainland Chinese companies since Russia invaded Ukraine. The list includes companies in Hong Kong, Serbia, India and Turkey, some of which would also be targeted for the first time, according to a draft proposal seen by Bloomberg. The company name is not disclosed for legal reasons.
The restrictions would prohibit European companies from doing business with listed companies as part of the European Union’s efforts to crack down on Russia’s ability to obtain sanctioned goods through companies in third countries. The EU had previously proposed listing several Chinese companies, but those proposals were dropped after resistance from some member states and assurances from the Chinese government.
The issue is crucial for the EU, which considers China one of its most important trading partners, and especially for Germany, where China is the biggest market for automakers such as Volkswagen.
EU sanctions must be supported by all member states to be adopted and may be subject to change by then.
A commission spokeswoman declined to comment on the proposal. A message left at the Chinese embassy in Brussels was not immediately returned.
The document mainly accuses technology and electronics companies of having “contributed to the strengthening of Russia’s military and technological capabilities, or to the development of Russia’s defense and security sector.”
Commission President Ursula von der Leyen visited Beijing in April and warned Chinese President Xi Jinping not to get drawn into war.
Europe’s record trade deficit with China narrows | But still much higher than pre-pandemic levels as Chinese exports soar
“We also hope that China will not directly or indirectly provide any military equipment to Russia,” von der Leyen said in Beijing. “Everyone knows that providing arms to an aggressor is a violation of international law, and it would seriously damage our relations.”
The proposal includes three Chinese companies and one each from India, Sri Lanka, Serbia, Kazakhstan, Thailand, Turkey and Hong Kong. Their inclusion on the proposed list “does not imply attribution of responsibility for their actions to the jurisdiction in which they operate,” the document states. The EU has so far listed more than 620 companies, almost all of them Russian companies.
Companies primarily import banned technology and electronics and re-export the goods to Russia.
The EU has also proposed sanctions against more than 110 individuals and entities as part of a package of sanctions to mark the second anniversary of Russia’s invasion of Ukraine.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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