EU Imposes New Sanctions Against Russia, Targeting Chinese and Indian Companies
Ukraine War and Sanctions
The European Union (EU) has agreed on a new package of sanctions against Russia, focusing on Chinese and Indian companies accused of supporting Moscow’s war effort in Ukraine. This package marks the 13th round of sanctions imposed by the EU in response to Russia’s invasion. While the measures involve sanctions on nearly 200 individuals and entities, they do not include comprehensive economic actions that directly impact crucial industrial sectors.
“We must keep degrading Putin’s war machine and keep the pressure high on the Kremlin,” stated the President of the European Commission, Ursula von der Leyen. The sanctions also aim to limit Russia’s access to drones.
Expansion of Sanctions
The EU is currently discussing additional sanctions in response to the recent death of Russian opposition leader, Alexei Navalny. For instance, the UK has already imposed sanctions on managers of the prison colony where Navalny passed away.
The EU and its G7 partners are striving to curb Russia’s use of third countries and transit routes to evade existing restrictions aimed at hampering its war economy. The package also targets companies in Sri Lanka, Turkey, Thailand, Serbia, and Kazakhstan, in addition to the mainland Chinese and Indian entities, as the EU seeks to crack down on such evasive strategies.
Pressure on G7 Capitals
Despite Western trade bans, Russia has managed to continue producing large quantities of drones, missiles, tanks, and other weapons. This persistence has put pressure on G7 capitals to strengthen their efforts to combat Russia’s evasion tactics.
Included on the sanctions list are three mainland Chinese companies, one Indian company, as well as several businesses in other countries. These companies have been identified as aiding Russia’s military and industrial complex through the supply of equipment, such as electronics and microchips.
Increase in Total Sanctioned Entities
Upon formal approval, the measures will raise the total number of individuals and entities sanctioned by the EU in response to Russia’s aggression against Ukraine to approximately 2,000. This approval is expected to take place before the second anniversary of Russia’s full-scale invasion, which occurred on February 24.
In reaching the recent agreement, Hungary withdrew its opposition to the package, allowing for its implementation.
Removal of Sanctions against Arkady Volozh
In another development, EU diplomats have decided not to renew sanctions against Arkady Volozh, founder of Russian tech giant Yandex, once they expire next month. Volozh would become the first person to be removed from EU sanctions lists after openly criticizing the ongoing war. This move follows the UK’s previous removal of sanctions against fintech tycoon Oleg Tinkov, the only other major Russian businessman to have condemned the invasion.
Arkady Volozh, who condemned Putin’s “barbaric” invasion and has resided outside of Russia since 2014, was sanctioned in 2022 for Yandex’s alleged complicity in the war. He subsequently resigned as chief executive and transferred voting rights. The lifting of the sanctions will enable Volozh to contribute to a collection of internationally-focused tech start-ups, comprising approximately 1,300 Russians who relocated abroad due to the war. These start-ups are being spun off as part of a deal to sell the Russian operations of Yandex’s Nasdaq-listed parent company.
