BRUSSELS — The European Union (EU) plans to add another 25 Chinese entities to a blacklist of companies for circumventing sanctions on Russia, as part of the next package of measures aimed at hobbling Moscow's war effort.
The entities - a mixture of mainland Chinese and Hong Kong-registered companies - will be banned from sourcing goods from the EU, should the package be agreed by the bloc's member states, according to senior figures familiar with the proposal.
The as-yet unnamed companies stand accused of funnelling European-made goods to Russian military-linked buyers that are banned from accessing them.
As part of the sixteenth package of measures since the war began in February 2022, a single Chinese actor is also expected to be sanctioned, meaning they will face a visa ban and have any assets in the 27-member union frozen.
It is not thought that the new listings are related to an alleged drone factory in the Xinjiang Uygur autonomous region, which some European governments claimed in November was making craft for Russia's military.
For that, the EU and 15 European countries, including Britain, issued a joint diplomatic demarche demanding an explanation from the Chinese foreign ministry at the time.
It is understood that after a significant delay, Beijing has passed mixed messages to the Europeans - saying variously that it has dealt with the issue, but then also denying that there was an issue to deal with in the first place.
"We have never provided lethal weapons to any party of the conflict and strictly control the export of military and dual-use drones in accordance with laws and regulations," said foreign ministry spokesman Lin Jian at the time.
Furthermore, Ukrainian President Volodymyr Zelensky asked European Council President Antonio Costa and the EU's top diplomat, Kaja Kallas, to tone down criticism on the issue when they visited Kyiv in December, senior sources said at the time.
Ukraine's President Volodymyr Zelenskiy speaks during an interview with Reuters, amid Russia's attack on Ukraine, in Kyiv, Ukraine, on Friday. (Photo: Reuters)
It is understood that Zelensky wished to draw some distinction between China and the roles played by Iran and North Korea in the war.
Amid an altered geopolitical landscape after the return of US President Donald Trump, Kyiv is thought to not wish to isolate Beijing, which it believes could take part in any peace process.
Ukraine has also long feared that going too hard on China would further alienate countries from the Global South, for which Zelensky's circle sees Beijing as a representative voice.
While Chinese firms have become a fixture on the EU's blacklist - referred to internally as Annex IV - full-blown sanctions are rarer. The taboo broke in December when six Chinese companies and one individual were listed for the first time.
Senior sources said neither the annex nor the sanctions appeared to have stemmed the flow of dual-use goods from China to the Russian military.
One said Beijing remained "the worst offender on sanctions circumvention" and that despite Europe's protests, it was "full steam ahead" for the trade in such goods.
Servicemen of the 44th Separate Mechanised Brigade of the Armed Forces of Ukraine fire a Leopard 1A5 tank during a training, amid Russia's attack on Ukraine, in Zaporizhzhia region, Ukraine, on Feb 5, 2025. (Photo: Reuters)
The EU has previously estimated that 70% of the sensitive, hi-tech products reaching the Russian military are coming via China.
Beijing, however, has dismissed the accusations, claiming to be neutral in the near three-year conflict.
"China has consistently opposed unilateral sanctions that have no basis in international law or authorisation of the UN Security Council," its foreign ministry said in response to December's sanctions.
"We strongly deplore and firmly oppose the EU's unjustified sanctions against and listing of Chinese companies and individual. We have lodged serious representations with the EU over this issue," it added.
The Ukraine war will be on the agenda when Kallas meets Chinese Foreign Minister Wang Yi for the first time since taking up her post late last year, in Munich next week.
The Munich Security Conference is expected to host a flurry of top-level diplomacy. It will provide an opportunity for international actors to engage senior figures from the Trump administration, with Vice-President J.D. Vance, Secretary of State Marco Rubio and special envoy for Ukraine Keith Kellogg all set to attend.
According to media reports, Kellogg will present the White House's plan for ending the war, which was launched by a full-scale Russian invasion of Ukraine on Feb 24, 2022.