The European Union is preparing a new round of pressure on Russia, this time challenging Beijing. Brussels plans to impose sanctions on Chinese companies that supply components for drones and chemicals for military needs to the Russian Federation. The decision is expected to be announced on June 15 at the meeting of foreign ministers in Luxembourg.

Chinese suppliers in the crosshairs

According to Politico, the EU External Action Service has prepared a list of four Chinese firms that will be added to the sanctions registry. These companies are accused of supporting Russian military efforts through the supply of critical technologies. Notably, Brussels hesitated for a long time to take such a step, fearing consequences for relations with Beijing, but now the course of tightening pressure has been determined.

The situation is exacerbated by the fact that, despite existing restrictions, Russia continues to receive up to 90% of critical technologies through China. New EU sanctions could seriously exacerbate the already tense relations between Brussels and Beijing.

Global network of support for Russia

Sanctions will not be limited to China only. The document prepared by the European Commission also mentions other players accused of circumventing restrictions and supporting the Russian economy. The list may include:

  • Five companies from the UAE;
  • Three companies from Turkey;
  • One company from Azerbaijan.

According to the document, these structures contribute to Russian shipping and energy exports. In addition, subsidiaries of the Russian oil company Lukoil, as well as dozens of individuals and legal entities, may come under attack.

"Mini-package" and the fight for oil prices

The decision on sanctions is planned to be adopted in the format of a "mini-package" on June 15. At the same time, a more extensive 21st sanctions package is being prepared, which will cover broad sectoral measures and is expected in the summer. Any new restrictions require unanimous support from all 27 EU member states.

Among the key proposals is freezing the price cap on Russian oil. Without this mechanism, prices will automatically rise in July. The North-Baltic group of countries is also insisting on comprehensive sanctions against Gazprom, Novatek, Rosneft, and Lukoil, as well as a complete termination of contracts with the Russian nuclear industry.

Threat of mirror measures and new routes

Against the backdrop of the preparation of sanctions, Beijing has already expressed readiness to respond with mirror measures. China criticizes the "Made in Europe" law, considering it discriminatory. In response to pressure from Brussels, Beijing is accelerating the development of the Trans-Caspian route to Europe bypassing Russia. This could lead to Moscow losing billions in transit revenues, losing its status as a key logistics hub between East and West.