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EU seeks to sanction Indian and Chinese companies for business with Russia: report

The European Union (EU) has introduced new trade restrictions targeting about two dozen companies, including one from India and three from China, accused of supporting Russia’s war in Ukraine, according to a Bloomberg report.

Publicly traded companies, primarily engaged in technology and electronics, are accused of contributing to Russia’s military and technological capabilities. The document highlights his alleged role in advancing Russia’s defense and security sector.

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If approved, this measure would mark the first time the EU has imposed sanctions on mainland Chinese companies since Russia’s invasion of Ukraine. The proposed draft list, seen by Bloomberg, includes companies in Hong Kong, Serbia and Turkey, he added.

Strong measures against trade with third countries

The proposed restrictions aim to prevent European companies from trading with listed companies, aligning with the EU’s strategy to curb Russia’s access to sanctioned products through third-country entities. Previous attempts to list Chinese companies were abandoned due to resistance from certain member states and assurances from Beijing.

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This issue is of significant importance for the EU, particularly in its relationship with China, a key trading partner. Germany, which is heavily reliant on China as the largest market for automakers such as Volkswagen AG, is following developments closely, the report added.

In particular, EU sanctions require unanimous approval by all member states and may undergo changes before adoption.

The EU Commission spokesperson declined to comment on the proposal, while no immediate response was received from the Chinese embassy in Brussels, according to the report.

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Commission President Ursula von der Leyen, during a visit to Beijing in April, warned Chinese President Xi Jinping against involvement in the war between Russia and Ukraine. She stressed the importance of not providing military equipment to Russia, stating that she would violate international law and strain the EU-China relationship.

Inclusion of several countries in the proposed list

The proposed list includes three Chinese companies and one each from India, Sri Lanka, Serbia, Kazakhstan, Thailand, Turkey and Hong Kong. The document clarifies that the inclusion does not attribute responsibility for actions to the respective jurisdictions. The EU has previously included more than 620 companies, mainly from Russia.

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These companies are accused of importing banned technologies and electronic products and subsequently re-exporting them to Russia.

In addition to trade restrictions, the EU has suggested sanctions on more than 110 individuals and entities as part of a broader package marking two years since Russia’s invasion of Ukraine.

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Posted: Feb 13, 2024, 06:27 am IST

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