Fintech

EU Looking to Sanction Chinese, India, HK Firms Over Russia Ties

 

European lawmakers are looking to impose sanctions on companies in China, and for the first time India – both major trading partners – in heightened efforts to contain Russia’s military in its war on Ukraine.

The European Commission has listed three Chinese companies, plus a business in India, and a group in Hong Kong which are among 21 firms facing sanctions.

The companies, which have not been named, are all accused of supporting or indirectly aiding the Russian military, according to a report by the Financial Times.

 

ALSO SEE: India Hits New High on Key MSCI Index as China Slides

 

The sanctions, likely to be imposed in the next week to 10 days, aim to restrict the trade in electronic components that could be repurposed for weapons systems or used in the production of drones.

These measures occur in the lead-up to the second anniversary of the conflict in Ukraine (February 24), which is still creating alarm in Eastern Europe, because of Russia’s continued aggression and delays in the US Congress blocking additional military support, EUToday reported.

There has been persistent concern about Russia’s continuing production of military hardware despite extensive sanctions imposed by Western nations.

Beijing hit back on Tuesday, saying it “firmly opposes illegal sanctions or ‘long-arm jurisdiction’ against China” because of its cooperation with Russia.

 

US tech found in Iranian weapons in Ukraine

Officials in Washington said late last week that “sensitive” items from the US had been showing up in Iranian weapons “recovered on the battlefield in Ukraine”, as well as sites in the Middle East.

“They do have sensitive US communications systems and they have sensitive microelectronics,” Jim Mancuso, the assistant director of the Global Trade Division at Homeland Security Investigations, told ABC News.

Iran, China and Russia were all “attempting to illegally acquire” US microchips and technology, Mancuso said. America’s adversaries used a “very extensive network” to get US technology out of the country, in violation of export laws. Specialized “procurement networks” were repacking the goods and routing them through China in order to get to places like Iran, he said.

Meanwhile, European diplomats anticipate that more than 200 people could face sanctions from the measures they are now working on.

The sanctions package, which must be endorsed by member states, will be the 13th the European Union has passed. The list of companies under sanctions will rise to more than 640, if it is approved, the FT said.

Aside from the companies in China, India and Hong Kong, businesses in Sri Lanka, Turkey, Thailand, Serbia and Kazakhstan are also reportedly on the latest sanctions list.

 

  • Jim Pollard

 

NOTE: China’s response to the measures planned by Brussels was added to this report on February 13, 2024.

 

ALSO SEE:

 

EU Plans Sanctions on 7 Chinese Firms Aiding Russia’s War – FT

 

China Fuelling War by Selling Russia Parts for Weapons – EP

 

China, HK Firms Sending a Flood of US Chips to Russia – Nikkei

 

Russia Says China Agreed to Sell Weapons: US Leak – WaPo

 

More Chinese Companies Facing US Sanctions Over Ukraine

 

US May Reveal Intel on Weapons China May Give Russia: WSJ

 

US Sanctions China Firm For Aiding Wagner Fighters in Ukraine

 

Russia Ships Sanctioned Oil to Asia in Chinese Supertankers

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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