EU Looks To Extend Trade Restrictions On Companies Aiding Russia

The European Commission has proposed to EU member states to consider trade restrictions on companies from China, Hong Kong, the UAE, Uzbekistan, and Armenia which are thought to be helping Russia obtain technology for its military and industrial complex, Bloomberg reported on Monday, quoting draft proposals it had seen.   

The Commission is targeting companies considered to be “directly supporting Russia’s military and industrial complex in its war of aggression against Ukraine,” according to a document Bloomberg has viewed.

The EU’s executive arm is looking to impose “stricter export restrictions regarding dual-use goods and technology, as well as goods and technology which might contribute to the technological enhancement of Russia’s defense and security sector,” a document reads.

The Financial Times reported on Sunday about the EU’s proposal.

Asked to comment on the report, Chinese Foreign Ministry spokesman Wang Wenbin said at a regular press conference today that “If the report you cited is true, the EU move will erode mutual trust and cooperation with China and sharpen division and confrontation in the world, which is extremely dangerous.”

“We call on the EU not to take that wrong course. Otherwise, China will take resolute measures to safeguard our legitimate and lawful rights and interests,” the Chinese official added.

Last month, Bloomberg reported that officials from the G7 group of the world’s most industrialized nations are discussing the idea of an outright ban on nearly all exports to Russia in another move aimed at hurting the Russian economy over Putin’s invasion of Ukraine.

The G7 officials are discussing the idea ahead of a summit of the leaders in Japan this month, with the goal of bringing the EU into the fold of countries banning nearly all exports to Russia, according to Bloomberg’s sources.

However, an EU implementation of such sanctions would need the approval of all 27 member states, which would create a lot of differences among EU nations and fears of retaliation from Russia.   

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

• The 5 Latin American Countries With The Largest Oil Reserves
• The $1 Million Math Problem Undermining Wind Energy
• A Secret War Is Brewing In The South China Sea