At least two dozen firms, including three Chinese firms, are likely to face the European Union’s latest sanctions. These firms have been accused of supporting Russia’s war efforts in Ukraine.
As per the draft document accessed by Bloomberg, most of them are tech companies. They are accused of “contributing to Russia’s military and technological enhancement,” according to the draft document.
If the sanctions are adopted, it would be the first time the EU would impose restrictions on Chinese firms since the Ukraine war broke out in February 2022.
The list also includes firms in Hong Kong, Serbia, India and Turkey, some of which are being targeted for the first time.
The companies have not been named for legal reasons.
The restrictions would ban European companies from trading with these listed firms. The EU’s latest action is part of its efforts to squeeze Russia’s ability to secure sanctioned goods through non-western countries.
EU sanctions need the backing of all member-states (27 in total) to be adopted.
The 27-member bloc has so far imposed sanctions on over 620 companies, almost all of them from Russia. These listed companies are mostly importing banned technologies and electronics goods and re-exporting them to Russia.
This is not the first time that the European Union has sought to sanction several Chinese firms.
But previous proposals had to be dropped following resistance from some member states, and after Beijing issued assurances.
Sanctioning Chinese firms would be a major step in the history of the bloc. The EU counts Beijing as one of its most important trade partners. Germany, in particular, counts China as its biggest market for automobiles.
(With inputs from agencies)
