EU prepares sanctions on Chinese companies aiding Russia’s war machine

The European Union has decided to introduce sanctions on Chinese companies for supporting the Russian military industry. The Financial Times writes about this with reference to a copy of the sanctions list. According to the publication, seven Chinese businesses have been listed in a new package of sanctions to be discussed by EU member states this week.

These companies are suspected of selling equipment to Russia that could be used in the creation of weapons. Some of the companies have already been placed under sanctions by the US. According to the FT, the previous list of sanctions included two companies from mainland China: 3HC Semiconductors and King-Pai Technology.

3HC, which makes computer chips, is accused of attempting to evade export controls and acquiring or attempting to acquire US-origin items in support of Russia's military and/or defence industrial base. In turn, King-Pai supplies microelectronics to Russia, which are used, in particular, in cruise missile guidance systems.

Downed Russian Kh-101 cruise missile. Photo from open sources.

In addition, there are five firms from Hong Kong on the list, namely Sinno Electronics, Sigma Technology, Asia Pacific Links, Tordan Industry and Alpha Trading Investments.

All the listed companies are involved in the production of semiconductors, microchips and electronics. Also, two companies from the UAE, one from Armenia, and Iranian firms engaged in the production and supply of drones to Russia may fall under the restrictions. The European Union intends to solve the problem of circumvention of sanctions in a broader sense, seeking to limit the sale of certain goods to third countries, if diplomatic pressure does not change their position.

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pGetty Images The electronic unit of the unmanned aerial vehicle used by Russia against Ukraine. Photo credits: STR/NurPhoto, via Getty Images

Western technology is still finding its way into Russia. This raises doubts about the effectiveness of the sanctions.

Therefore, the relevant institutions in the US and Europe are working out additional possibilities for restrictions. In March, US and EU officials traded information on what technology Russia could be purchasing.

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Currently, there is a surge in chips and other electronic components being sold to Russia through Armenia, Kazakhstan, and other countries, according to documents obtained by journalists.

There is also information on the flow of eight particularly sensitive categories of chips and other electronic devices that have been deemed critical to the development of weapons, including Russian cruise missiles.