EU prepares sanctions on Chinese banks over Russia ties
Photo: EU to impose sanctions on two regional Chinese banks (Getty Images)
The European Union leadership is planning to ban European companies from cooperating with two Chinese banks that have been helping Russia circumvent existing trade restrictions, according to Bloomberg.
According to draft documents, financial institutions operating within the European Union will be prohibited from conducting any transactions with two regional Chinese banks located near the China-Russia border.
The names of the banks have not yet been disclosed, as the proposed sanctions have not been officially published.
The documents indicate that the banks will be added to the list of institutions believed to have assisted Russia in processing transactions or providing financing for export operations, enabling Moscow to circumvent EU sanctions.
Some of the listed banks have also reportedly offered services related to crypto assets, which Russia is allegedly using to bypass restrictions.
Bloomberg notes that China remains a key economic partner for Russia amid its war against Ukraine. Chinese companies have been supplying Moscow with restricted components and technologies needed for weapons production.
Beijing has repeatedly denied allegations of supporting Russia’s war efforts.
New EU sanctions package against Russia
The proposed restrictions are expected to be included in the draft of the EU’s 18th sanctions package.
The measures aim to increase pressure on Moscow to achieve an immediate ceasefire and initiate peace negotiations.
The European Commission is expected to present the new sanctions package by the end of June, with the EU aiming to secure agreement from all member states ahead of the summit in Brussels on June 26.
However, some media outlets report that the 18th sanctions package is one of the most far-reaching since the start of the full-scale war, and that Brussels may face challenges in securing its approval.
