The European Union is set to impose sanctions on companies in mainland China for the first time, targeting loopholes facilitating the transfer of military technology to Russia through third countries. This move is part of the EU's ongoing efforts to tighten restrictions on Moscow, preventing it from evading existing sanctions. Three companies in mainland China, four in Hong Kong, and one in India are among those listed in a 91-page document, highlighting entities EU member states intend to add to an expanding sanctions list on the second anniversary of Russia's invasion of Ukraine.
The EU is particularly concerned about military technology being sold outside the bloc and finding its way to Russia via intermediary nations. The diplomatic service of the EU has proposed adding approximately 20 firms, including three in mainland China, one in Turkey, and one in India, to an export blacklist targeting those supporting Russia's military endeavors.
As part of these efforts, the EU is considering prohibiting businesses within its 27-nation bloc from engaging with these companies, intensifying measures against circumvention of sanctions on Russia. The proposed sanctions also include two Russian shipping companies accused of transporting arms from North Korea to the Russian port of Dunai.
The EU has already imposed similar export bans on over 600 firms, including those in Hong Kong and other countries, aiming to curtail revenue streams to Russia. While previous attempts to include Chinese firms faced opposition from Beijing and some EU capitals, the current list has undergone thorough investigation, with communication established with China.
Existing sanctions are estimated to have denied Russia $400 billion in revenues, but with Vladimir Putin increasing military supplies, the EU is seeking more effective measures. The upcoming sanctions may also result in additional Russian officials facing asset freezes and visa bans in the EU. The list includes shipping firms known for operations between Pyongyang and the Russian port of Dunai, already under the scrutiny of the United States.
Furthermore, the sanctions list targets re-education institutions in Russia and occupied territories, focusing on children's indoctrination with "patriotic" and "military education." These institutions expose pupils to Russian soldiers, encourage support for the military, and teach drone handling and battle games.