M10news — The European Union is considering whether to introduce sanctions targeting China and other countries accused of helping Russia sustain its energy revenues, according to officials familiar with ongoing talks.
Background to the Talks
Discussions reportedly began in Brussels yesterday and are set to continue in Washington today during meetings between senior EU and US officials.
The move reflects growing concerns in Western capitals that Moscow has been able to cushion the impact of sanctions imposed after it invaded Ukraine by exporting oil and gas to third countries.
China’s Role in Russian Trade
China remains one of the largest buyers of Russian crude oil and liquefied natural gas (LNG), with imports increasing significantly since 2022. Analysts say this trade has provided Moscow with vital revenue to continue funding its war effort in Ukraine despite Western restrictions.
Considering Secondary Sanctions
Three people briefed on the preliminary talks told the Financial Times that the idea of secondary sanctions — measures imposed on third countries or companies that do business with Russia — has been raised repeatedly in EU internal discussions.
Controversial Step for the EU
Secondary sanctions are seen as a highly controversial step, as they would not only target Russia but also penalise foreign entities engaged in its energy trade. Such measures would require unanimous support among the EU’s 27 member states, which observers say may prove difficult to achieve.
Opposition Within the Bloc
Hungary, a country heavily reliant on Russian oil and gas, is widely expected to oppose any new sanctions targeting Moscow’s partners.
Slovakia, another energy-dependent EU member, could also resist proposals that might disrupt its supply or further strain relations with Beijing.
Transatlantic Coordination
The discussions come ahead of EU-US coordination meetings in Washington, where officials are expected to explore ways of tightening enforcement of existing sanctions.
Washington has long pushed for a tougher stance on countries accused of undercutting Western efforts to isolate Moscow.
Risks to EU-China Relations
Analysts warn that sanctioning Chinese firms or restricting trade ties with Beijing could escalate tensions between the EU and China at a sensitive time.
Brussels is already locked in disputes with Beijing over electric vehicle subsidies and accusations of unfair trade practices.
Possible Economic Fallout
Trade experts caution that any move against China could spark retaliation that harms European businesses.
China is the EU’s largest trading partner in goods, and restrictions could hit sectors such as automotive, technology, and manufacturing.
Moscow’s Energy Lifeline
Despite Western sanctions, Russia’s oil and gas revenues remain robust. Discounted sales to Asian markets, particularly China and India, have allowed Moscow to maintain export levels, weakening the intended financial squeeze.
Pressure From Ukraine Allies
Ukraine and its allies continue to push the EU to close loopholes and strengthen enforcement of sanctions, arguing that Moscow’s ability to finance its war machine undermines battlefield efforts and prolongs the conflict.
Outlook
Whether the EU can reach a consensus on secondary sanctions remains uncertain. Analysts suggest the issue could expose divisions within the bloc over how far Europe is willing to go in confronting China, even as pressure mounts to limit Russia’s energy revenues.
