EU Plans New Sanctions on Chinese Companies Linked to Russian Drones, Shadow Fleet

The European Union is preparing to sanction four Chinese companies accused of supporting Russia’s war against Ukraine, in a move that could further strain relations between Brussels and Beijing.

According to documents seen by Politico, the firms are expected to be included in a new sanctions package that EU foreign ministers are due to consider at a meeting in Luxembourg next week.

Politico reported that the companies are accused of assisting Russia’s so-called shadow fleet, supplying chemicals used by Russia’s military, and providing components used in the production of attack drones.

The proposed measures come as tensions between the EU and China continue to grow. European Commission President Ursula von der Leyen is seeking support from member states for tougher action against subsidized Chinese imports, while Beijing has warned it would respond to additional EU trade restrictions.

Although the EU has previously sanctioned Chinese entities linked to Russia, the latest proposal signals that Brussels is prepared to continue targeting companies accused of helping Moscow circumvent restrictions despite repeated objections from Beijing.

According to the report, the measures form part of a smaller sanctions package expected to be adopted on June 15 while the EU prepares a broader 21st sanctions package, which is expected later this summer.

The draft proposal also includes sanctions against five companies based in the United Arab Emirates, three in Turkey, and one in Azerbaijan. EU officials accuse the firms of facilitating Russian shipping operations and energy exports.

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In addition, the package would target subsidiaries of Russian oil giant Lukoil, as well as dozens of individuals and companies alleged to be supporting Russia’s military-industrial complex.

The proposed listings are part of the EU’s “rolling” sanctions strategy, under which entities are added or removed based on Moscow’s evolving methods of bypassing Western restrictions.

Meanwhile, EU governments continue to negotiate the contents of the bloc’s forthcoming 21st sanctions package.

One proposal under discussion would lock in the current price cap on Russian oil exports, preventing it from rising automatically with global energy prices and helping limit additional revenue flowing to the Kremlin.

According to a separate document cited by Politico, a group of Nordic and Baltic countries is also advocating broader sanctions against major Russian energy companies, including Lukoil, Gazprom, Novatek, and Rosneft. The group is further pushing for the EU to end all remaining contracts with Russia’s nuclear sector.

The European Commission said it does not comment on pending sanctions packages, but stressed that the bloc remains focused on increasing pressure on Russia and closing sanctions-evasion loopholes.

“What we can say is that – as with all previous packages – our goal is to maximise economic pressure on Russia, including by introducing new measures to tackle circumvention.”