On the eve of the second anniversary of Russia's invasion of Ukraine, the European Union published an exhaustive new list of companies, entities and persons from countries including Russia, India, Iran, China and Syria who are involved in Russia's defense and security. It was related to the security department.
The new sanctions add 27 new groups to the list of more than 600 already facing EU bans and restrictions.
But the additions also include, for the first time, companies from mainland China and India, countries that have been the largest buyers of Russia's fossil fuels since the Kremlin launched a full-scale war against Ukraine in February 2022. of companies are targeted.
Here we detail the new sanctions, who they target, why these companies were sanctioned, how China, India, and Russia are responding, and why it all matters.
What other countries are companies being sanctioned?
Of the 641 companies on the 27-nation bloc's sanctions list, 619 are in Russia, but a small number of companies from other countries are also on the sanctions list. These include:
- 8 Iranian aircraft and airline companies
- 4 companies from Hong Kong. The US government announced in December 2023 that these companies sent high-priority items to Russia “critical to Russia's war in Ukraine.”
- 3 companies in mainland China
- Three people from Uzbekistan, including Mvidion, who was sanctioned by the United States for allegedly manufacturing drones used by the Russian military.
- 2 airlines in the United Arab Emirates (UAE)
- One company each from India, Singapore, Sri Lanka, Syria, Armenia, Serbia, Turkey, Thailand and Kazakhstan is on the list.
- Crimea-based Zarif Shipyard was annexed by Russia in 2014, but is still legally recognized by most countries as part of Ukraine.
In addition to Russian companies, the sanctions target Russian officials, including members of the judiciary, local politicians, and individuals the EU says are “responsible for the illegal deportation and military reeducation of Ukrainian children.” There is.
Most international companies were sanctioned by the EU in June 2023. Only 27 of the companies on the list were initially announced as being sanctioned on Friday.
Why are foreign companies subject to sanctions?
These foreign companies are under sanctions for allegedly exporting munitions to Russia that could be used in the war against Ukraine. Dual-use items are those that can be used for both civilian and military applications, such as technology, satellites, and drones. Under EU regulations, foreign countries are referred to as “third countries.”
Ali Ahmadi, a scholar of sanctions and economic policy, explained that these countries are often “transshipment points,” or places where sensitive technology is shipped to Russia.
If European countries refuse to export items to Russia because of possible military use, the items could still be sent to countries such as Uzbekistan or the UAE. From there, it can be sold to Russia, sometimes without the brand name or label of the country of origin.
“So essentially it ends up indirectly in Russia,” added Ahmadi, an executive fellow at the Geneva Center for Security Policy and an analyst at Gulf State Analytics.
The United States also on Friday imposed nearly 600 new sanctions against entities in Russia and other countries, the largest single round of sanctions since Russia's invasion of Ukraine on February 24, 2022.
US President Joe Biden said the sanctions were a response to the war in Ukraine and the death of Russian opposition leader Alexei Navalny. There is overlap in the organizations targeted by the US and EU sanctions. Ahmadi said the United States and the EU “certainly cooperate well with each other, but there are entities that are on one's sanctions list and not on the other's sanctions list.”
How will sanctions affect companies?
EU sanctions mean EU member states cannot sell battlefield or dual-use goods to companies on the sanctions list.
Ahmadi said U.S. and EU sanctions against companies from countries other than Russia “will make it significantly more difficult for companies to interact with the outside world.”
Ahmadi compared the sanctions to former US President Donald Trump's maximum pressure campaign against Iran and Syria, saying that “European countries have recognized that their sanctions are very leaky”. He added that it is a more aggressive stance that reflects the
However, Ahmadi added that third countries themselves would not necessarily be hit hard, as only a handful of companies in third countries have been targeted so far.
Outside of Russia, the country with the most companies targeted is Iran. The Iranian companies on the list are state-run institutions. “Whatever business they do is with Iran's allies,” Ahmadidi said. “They have nothing to do with the dollar. They do not do business with any entity in Europe.” Their very purpose and design effectively protects them from new sanctions.
So what is the meaning of sanctions? Experts say it's simply a signal of EU disapproval and a reminder to the countries hosting these companies, including China and India, of what more Brussels can do if it wants to.
Did China issue a warning to the EU after sanctions?
Following the sanctions announcement, China's Ministry of Commerce issued a statement on Monday condemning the sanctions.
The ministry said in a statement that the sanctions were unilateral and had “no basis in international law or approval by the United Nations Security Council.”
Beijing, New Delhi, and most capitals in the Global South have long criticized sanctions imposed by individual countries and blocs such as the European Union, which do not have the legitimacy of UN recognition, but China's rejection of the Security Council The rights make it virtually impossible for the agency to sign. Lift sanctions against Beijing.
The Chinese statement also said the sanctions go against the spirit of the discussions at the China-EU summit between Chinese President Xi Jinping and European Commission President Ursula von der Leyen in December 2023. He added.
China warned that these sanctions would have a negative impact on economic and trade relations between China and the EU.
But Ahmadi said China's response, like the EU's sanctions, was largely symbolic.
“This is something that China feels it has to respond to,” Ahmadi said. However, he added that only Chinese microtechnology companies were affected, and the impact on China was not significant.
If the EU were to impose sanctions on large Chinese banks, it would likely have a significant impact on the global economy. But Ahmadidi said: “I don't think the Europeans or Americans are ready to go that far. Even if they were, that might be the only way to stop transshipments through China. ” he said.
Which Indian companies have been sanctioned?
Bengaluru, India-based Si2 Microsystems Pvt Ltd is a new addition to the sanctions list as of Friday.
Si2 designs integrated circuits for the commercial, military and space industries, and has partnered with India's Ministry of Electronics and Information Technology (Meity) and the state-run Indian Institute of Technology Madras as part of its research into silicon-based chip manufacturing. I am. Photonic processor core.
The company makes chips for quantum computing and avionics, according to a government press release and global technology publisher The Register, and is a company that makes chips for quantum computing and avionics, and is a company that has previously been named by the Indian Space Research Organization (ISRO), General Electric and IBM. Claims to be a customer.
EU sanctions do not detail what specifically Si2 is believed to have helped Russia with, but experts suspect Si2 had to facilitate semiconductor shipments to Moscow. I doubt that there is. Many modern weapons systems rely on semiconductors.
India is a close strategic partner of the EU and the US. Western countries have been the biggest buyers of Russian fossil fuels since the war began, second only to China, but have so far avoided targeting entities in New Delhi or India.
What is EU Regulation 833/2014?
European Council Regulation 833/2014, adopted on 31 July 2014, states that “dual-use goods and technology cannot be sold, supplied, supplied, directly or indirectly, to Russia or for use in Russia.'' Transfer or export is prohibited.” The system was adopted following Russia's annexation of Crimea and Kremlin support for separatist movements in eastern Ukraine.
The EU regulation published on Friday is essentially an amendment to Regulation 833/2014. The last amendment was made on December 18, 2023, when 13 new companies were added to the sanctions list.
Initial sanctions and restrictive regulations primarily targeted Russian and Belarusian companies. In February 2023, seven Iranian companies were sanctioned for producing items used by the Russian military in the war. In June 2023, entities from Hong Kong, China, Uzbekistan, United Arab Emirates, Syria, and Armenia were also added to the sanctions list.
How did Moscow react to EU sanctions?
In response to the latest EU sanctions, Russia's Ministry of Foreign Affairs announced that it has significantly expanded the list of EU officials and politicians banned from entering Russia. The announcement was made on Friday.
“The European Union continues its futile attempts to pressure Russia through unilateral restrictive measures,” the Russian Foreign Ministry said in a statement.
