The new EU sanctions project, more cautious towards China

The new proposal on the 11th package of sanctions against Russia imposed by the EU after the Russian aggression against Ukraine includes a more cautious wording regarding the sanctioning of third countries where there are companies that supply Russia with goods that can be used by the military-industrial complex of it, reveals a document consulted by Reuters on Tuesday.

The European Commission’s initial proposal for this new package of sanctions targets 541 companies, of which 526 are Russian companies, and eight are Chinese and Hong Kong companies accused of re-exporting to Russia goods that can be used in the military industry. The same proposal introduces a new mechanism that would allow future restrictions on European exports to third countries that evade sanctions, so this mechanism could also target China, according to the proposal formulated by Brussels.

During the first talks between EU states on the proposal last week, Germany spoke out against any future restrictions on trade with China, an important market for German industry.

Previously, Beijing sent the EU a clear warning on any actions that would target both China as a state and Chinese companies. “We urge the EU not to go down this path. Otherwise, China will take firm actions to protect our legal and legitimate rights and interests,” the Chinese Foreign Ministry warned.

Following the negotiations between the EU states, a document revising the Commission’s proposal was drawn up. According to him, “alternative measures”, such as individual sanctions, should be considered before the EU bloc restricts trade with any third country under the sanctions against Russia.

The ministers of the 27 EU states have new discussions on Tuesday on the new package of sanctions against Russia, the adoption of which is not expected before the G7 summit that will take place on Friday and Saturday in the Japanese city of Hiroshima.