EU puts Chinese banks under pressure: sanctions against Putin's aides!

EU puts Chinese banks under pressure: sanctions against Putin's aides!

The European Union plans to put two Chinese banks on a sanctions list. This comes amid growing concerns that these banks have helped Russia circumvent EU trade restrictions. Details of the affected banks are not yet known, but the EU intends to deny these institutions access to European financial institutions. In order to pass the sanctions, the consent of all EU member states is required. These measures are part of a broader EU plan to further weaken Russia's influence in the Ukraine conflict, as China is often perceived as a supporter of Russia but denies providing military assistance fr.de reported.

The trade association between Russia and China will reach new dimensions with a record value of 245 billion dollars in 2024. Major Russian banks have reportedly set up an alternative payment system called “The China Track” to bypass Western regulators. Chinese companies are also responsible for supplying Russia with important minerals such as gallium, germanium and antimony. Despite the EU's intention to impose sanctions, many Chinese banks have limited their business relationships with Russian financial institutions to avoid secondary sanctions. This shows that three out of four major Chinese state-owned banks, including ICBC, have stopped accepting payments from sanctioned Russian banks.

EU reactions and future actions

The EU has adopted several sanctions packages against Russia in recent years, including the 17th sanctions package that was recently adopted. Foreign Minister Johann Wadephul announced that new sanctions will follow as the Russian leadership does not respond seriously to peace negotiations. Tagesschau.de reported on the challenges and successes in implementing the existing sanctions. A confidential paper from the Foreign Office analyzes these aspects comprehensively.

The sanctions have a significant impact on the Russian economy, according to EU sanctions officers David O’Sullivan and Daniel Markic. There have been successes in controlling the export of war-related goods via third countries, while problems remain with countries such as Kazakhstan and the United Arab Emirates.

China's role in sanctions evasion

China is responsible for about 80% of sanctions evasion. Chinese companies continue to supply Russian defense factories with important goods. In December 2024, seven Chinese companies and individuals were sanctioned under the 15th sanctions package. The EU plans to take further measures against the Russian energy and banking sectors in the future.

Although some member states, including Hungary, reject these future sanctions, the discussion of measures against sanctions, including breaking off talks with the USA on this issue, remains a central concern. G7 cooperation has also lost momentum and exchanges between American and European financial investigators are no longer taking place.