EU is considering sanctions against two small Chinese banks for helping Russia - Bloomberg
Kyiv • UNN
The European Union has proposed sanctions against two small Chinese banks that are helping Russia circumvent trade restrictions. EU financial institutions will be prohibited from any transactions with these banks.
The European Union has proposed sanctions against two small Chinese banks for helping Russia circumvent the bloc's trade restrictions, Bloomberg reports, citing documents, writes UNN.
Details
According to the proposed sanctions, EU financial institutions will be prohibited from conducting any transactions with the two regional lenders, which are based near China's border with Russia. Bloomberg does not name the banks, as the measures have not yet been published.
The banks will be added to a list of financial institutions that allegedly helped Moscow by "processing transactions or providing export financing for trade operations" that circumvent EU sanctions, one of the documents says. Some banks on the list also provided "services using crypto assets" that help Russia in its efforts to evade sanctions, according to the document.
A European Commission representative declined to comment on the documents.
China, the publication notes, has become a key factor in Russia's war in Ukraine, as its companies supply Moscow with parts and technologies that are restricted, but are necessary for the production of weapons. The proposed package would also add several Chinese firms to those already under EU sanctions.
Beijing has repeatedly denied aiding Moscow's military efforts.
Chinese Foreign Ministry spokesman Lin Jian said at a regular press briefing in Beijing on Thursday that most countries have trade ties with Russia.
"Normal interaction and cooperation between Chinese and Russian companies is in line with market rules and economic rules," he said. "It is not directed against any third party and should not be disrupted by any third party."
Addendum
These proposals, which will require the support of all member states and may be amended, are contained in what will be the EU's 18th sanctions package since the start of Russia's full-scale invasion of Ukraine in 2022.
As part of the measures under discussion, the EU is proposing to disconnect more than 20 banks from the SWIFT international payment system and impose a complete ban on transactions for these lenders. It also wants to impose sanctions on the Nord Stream gas pipelines to ensure that they are not restored in the future.
In addition, the bloc wants to lower the "Group of Seven" oil price cap from $60 to $45, but this will likely require the support of G7 leaders meeting in Canada next week, the publication writes.
The European Commission has also proposed banning imports of petroleum products produced from Russian crude oil to third countries, with the exception of partner countries.
Restrictions on the "shadow fleet" of Russian oil tankers will be tightened by adding nearly 80 vessels, bringing the total to over 400, as well as sanctions on several organizations and traders operating with the secret fleet.
In the area of trade, the package will add more goods to the existing lists of restricted goods, including machinery and chemicals that Moscow uses to produce and power weapons, as well as nearly two dozen organizations believed to be helping Russia circumvent these restrictions.
The package is intended to put pressure on Moscow to agree to an immediate ceasefire and peace talks with Ukraine. The EU aims to obtain the approval of member states before leaders gather in Brussels for a summit scheduled for June 26, the publication writes.