Approximately 20 Chinese firms, including a global satellite industry giant, are among 675 companies listed by the EU in its 14th package of sanctions linked to Russia’s invasion of Ukraine.
The sanctions against the companies, many of them based in Hong Kong, follow repeated Western accusations that China is supporting the Russian war effort, which Beijing denies.
The sanctioned firms include two main players in China’s satellite industry that have been involved in the sale of satellites and provision of satellite images to Russia’s Wagner mercenary group.
In October, an investigation by French news agency AFP unveiled a contract established in November 2022, through which Beijing Yunze Technology Co. Ltd sold two satellites, worth approximately $31 million, to a company linked with Wagner’s boss, Evgeny Prigozhin, who died in an ambiguous plane crash in August 2023.
Chang Guang Satellite Technology (CGST), which owned the two high-resolution observation satellites (75 cm), is regarded as one of the world’s leading space companies, in terms of both technological level and number of satellites. It aims to possess 300 of them by 2025. CGST was sanctioned by the EU on Monday.
Among the other penalised entities is the satellite imagery broker, Head Aerospace Technology, which was previously targeted by retaliatory measures from the U.S. State and Commerce Departments in 2023, for allegedly continuing to facilitate Russia’s aggression. Head Aerospace Technology was identified as a provider of satellite imagery of Ukrainian sites to entities affiliated with Wagner and Prigozhin.
On Monday, the EU official journal stated that the sanctioned entities and individuals contribute to Russia’s technological and military strengthening or to the development of Russia’s defence and security sector.
In February, EU country ambassadors had agreed on a package of sanctions primarily targeting three Chinese companies to prevent the circumvention of sanctions.
China does not directly supply arms to Russia, but the U.S. accuses Chinese companies of providing components and equipment for Russia’s armament sector. U.S. Secretary of State Antony Blinken stated last week that Chinese groups provide crucial support to Russia’s military-industrial complex.
China’s Foreign Ministry spokesperson Lin Jian strongly objected, stating that the U.S. spreads false information without any proof and deflects responsibility onto China.
