BRUSSELS — The EU’s foreign policy service is pushing to sanction four Chinese companies it accuses of supporting Russia’s war against Ukraine, according to documents seen by POLITICO.
The four firms, likely to be included in the latest package of sanctions due to be approved at a gathering of EU foreign ministers next week, assist Russia’s shadow fleet, providing chemicals for Russia’s military and delivering components Moscow uses to build attack drones, officials said.
The move is likely to feed into rising tensions between Brussels and Beijing as European Commission President Ursula von der Leyen seeks the backing of EU capitals for a major crackdown on subsidized Chinese imports. Last week, China said it would take “resolute countermeasures and effective steps to safeguard its own interests” if the EU imposed additional trade restrictions.
The EU has targeted Chinese firms in previous rounds of sanctions, but the latest proposals show the bloc doubling down on its strategy of going after Russia’s enablers despite China warning of “consequences” over measures included in the EU’s 20th round of Russia sanctions.
The tensions will be in the spotlight on Tuesday when Trade Commissioner Maroš Šefčovič is meeting Chinese trade envoy Li Chenggang on the sidelines of an OECD ministerial meeting in Paris, according to Commission spokesperson Olof Gill.
The document seen by POLITICO, dated May 21, will feed into a “mini-package” of sanctions that two EU officials said would be adopted at a gathering of EU foreign ministers in Luxembourg on June 15. That package will include a number of individual listings while the bloc works on a 21st package of sanctions that would take a wider, sectoral approach and is expected to be adopted later in the summer.
Any EU sanctions must be approved unanimously by all 27 EU countries. Ambassadors can propose to remove one or several of the provisions included in the EEAS proposal.
Targeting oil revenues
In addition to the four Chinese firms, the document proposes sanctions against five firms located in the United Arab Emirates, three in Turkey and one in Azerbaijan, all of which are described as facilitating Russian shipping and energy sales. It also proposes sanctioning subsidiaries of Russian company Lukoil, as well as dozens of individuals and firms described as supporting Moscow’s war machine.
The list is part of a “rolling” sanctions approach whereby entities are added or removed based on how Russia is changing its tactics to avoid sanctions.
POLITICO has decided not to publish the names of the firms involved.
The list underscores how Brussels is pursuing an approach of increasing pressure on Russia rather than seeking direct negotiations with Moscow in order to take advantage of battlefield gains by Ukraine and push Russia into serious talks.
EU countries are still debating what to include in the 21st package of sanctions. A key proposal is to lock in a price cap for purchases of Russian oil, which is due to expire in July. If the cap expires, then it would automatically adjust upward in light of increased global energy prices. Several countries are pushing to lock in the current price to deprive Moscow of increased revenues.
A group of Nordic and Baltic countries is also pitching more comprehensive sanctions against Russian energy firms including Lukoil, Gazprom, Novatek and Rosneft, according to a separate document seen by POLITICO. The group of hawkish countries also argues that the bloc should end all contracts with Russia’s nuclear industry.
The European Commission said in a statement: “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.”
Carlo Martuscelli contributed reporting.
Chinese firms that help Russia are next for EU sanctions
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