A senior European Union (EU) official encouraged the bloc's 27 members on Tuesday, May 9, to adopt trade measures against countries that aid Russia in avoiding sanctions. This prompted China to threaten retaliation if it were to be targeted.

Combating Sanctions Evasion

Ursula von der Leyen, president of the European Commission, said the measures should be included in a new round of sanctions on Russia, AP News Reported. This matter is currently being discussed by the member countries during her visit to Kyiv.

"We recently see a growth of highly unusual trade flows through the European Union and certain third countries. These goods then end up in Russia," von der Leyen remarked, standing next to Ukrainian President Volodymyr Zelenskyy.

She did not specify which nations she was worried about, but EU officials have long voiced alarm about specific shipments passing via China and Iran.

Von der Leyen told reporters that if EU products move to third countries and subsequently to Russia, they might recommend sanctions to member states.

Sanctions need the unanimous approval of all 27 members. In recent months, von der Leyen's commission has been the one to propose what disciplinary action to take, leaving it up to the member nations to hash out their disagreements, which may take weeks at a time.

This system will be used with extreme caution as a last option, after a thorough risk assessment and with the blessing of EU member states. "There should be no doubt that we work against sanctions circumvention," she said.

Threat From China

China's foreign minister warned that if the EU took action against Chinese enterprises operating legally in Russia, Beijing would retaliate.

During a press conference after his meeting with his German colleague in Berlin, Chinese Foreign Minister Qin Gang emphasized that his country's laws prohibit the shipment of weapons to conflict zones. He also stressed that exchange and cooperation between Chinese and Russian firms not be hampered, ABC News reported.

"We are strictly against some countries using their own domestic laws, their long arm jurisdiction, to impose one-sided sanctions against China. In such a case, we would also react strongly to this and defend the legitimate interests of our country and our companies," Qin said, according to an official interpreter.

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No Exception

Annalena Baerbock, Germany's foreign minister, emphasized that any penalties would target individual firms rather than governments for supplying key components to Russian armaments manufacturers, particularly so-called dual-use commodities.

She told reporters in Berlin that this is not directed at any specific country but rather in particular at these sanctioned goods. But it is expected that all countries, including China, will exert appropriate pressure on their companies.

Since President Putin sent his soldiers to Ukraine in February 2022, the EU has sanctioned Russia ten times. Many financial institutions, businesses, and markets have felt the effects, as has the very vulnerable energy industry. More than 1,000 officials have had their assets frozen or been prohibited from leaving the country.

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