Introduction of sanctions against companies supporting the Russian Federation

The West imposes sanctions on Chinese companies for supporting Russia

The European Commission (EC) has imposed new trade restrictions on three major companies in China, accusing them of supporting Russia’s military actions in Ukraine. This marks the first time Chinese legal entities have been sanctioned by the EU for their involvement in aggression in Ukraine. Previously, the EU had proposed including several Chinese companies on the sanctions list, but faced resistance from some member countries and assurances from Beijing that it would not violate the sanctions.

Chinese companies cutting ties with Russia

Fearing the impact of sanctions, Chinese companies are beginning to sever ties with Russia. Major banks like Chouzhou, Commercial Bank of China, China Construction Bank, and Bank of China have stopped doing business with sanctioned Russian organizations. This move is seen as a significant blow to Russia, with some comparing it to the undermining of the ‘Nord Stream’ pipeline. Despite previously pledging unlimited support to Russia, China seems to be reconsidering its stance due to economic challenges and escalating costs.