EU imposes sanctions on 19 Chinese companies for alleged support of Russia

The European Union Monday imposed sanctions on 19 Chinese companies aimed at punishing what the West believes is Beijing’s support for Russia’s war in Ukraine.
A list published in the EU’s Official Journal includes several companies located in Hong Kong as well as two global satellite giants.

The 14th package of sanctions against Russia added 61 new companies to the list of entities accused of directly “supporting Russia’s military-industrial complex” in the war in Ukraine, bringing the total to 675 firms.

These companies are now subject to drastic restrictions over sales of “dual-use goods and technology” that could be used for the “enhancement of Russia’s defense and security sector”.

China denies Western accusations that it is supporting Russia’s military campaign.

Among the newly added companies are two major players in the Chinese satellite industry involved in the sale of satellites and satellite imagery to Russia’s Wagner mercenary group.

In October, an Agence France-Presse (AFP) investigation revealed that Wagner 2022 signed a contract worth more than $30 million with Chinese firm Beijing Yunze Technology Co Ltd to acquire two satellites and use their images.

The contract was signed in November 2022, over half a year into Moscow’s invasion of Ukraine in which the Wagner group under its founder Yevgeny Prigozhin was playing a key role on the battlefield.

The two high-resolution satellites belonged to Chang Guang Satellite Technology, a leading global satellite company which was the unit to be added to the EU’s sanctions list.

Another company named Monday was Head Aerospace Technology, which sells satellite images and was placed on a U.S. sanctions list in 2023 for supplying the Wagner Group.

Even if China does not deliver weapons directly to Russia, the United States and Europe accuse it of selling components and equipment to Moscow’s military industry.

Chinese foreign ministry spokesperson Lin Jian has dismissed the claims as “false information”.

Russian-based companies make up about half of the 61 entities added to the EU’s list Monday.

Besides the 19 Chinese companies, it also added nine from Türkiye, two in Kyrgyzstan, one in India, one in Kazakhstan and one in the United Arab Emirates.