EU to Sanction Chinese Microchip Manufacturers for Aiding Russia

The European Union (EU) has decided to slap sanctions on seven Chinese companies for supporting the Russian military industry.

The Financial Times writes about this with reference to a copy of the sanctions list.

The Chinese firms, some of which have already been placed under U.S. sanctions, have been listed in a new package of sanctions to be discussed by EU member states this week.

The previous list of sanctions included two companies from mainland China: 3HC Semiconductors and King-Pai Technology.

3HC, which makes computer chips, is accused of attempting to evade export controls and acquiring or attempting to acquire U.S.-origin items in support of Russia’s military and/or defence industrial base. In turn, King-Pai supplies microelectronics to Russia, which are used, in particular, in cruise missile guidance systems.

In addition, there are five firms from Hong Kong on the list, namely Sinno Electronics, Sigma Technology, Asia Pacific Links, Tordan Industry and Alpha Trading Investments. All the listed companies are involved in the production of semiconductors, microchips and electronics.

Companies from U.A.E., Armenia and Iran likely to be sanctioned

Two companies from the U.A.E., one from Armenia, and Iranian firms engaged in the production and supply of drones to Russia may fall under the restrictions.

How is Russia able to access western technology?

Western technology is still finding its way into Russia. This raises doubts about the effectiveness of the sanctions. Therefore, the relevant institutions in the U.S. and Europe are working out additional possibilities for restrictions.

In March, U.S. and EU officials traded information on what technology Russia could be purchasing.

Currently, there is a surge in chips and other electronic components being sold to Russia through Armenia, Kazakhstan, and other countries, according to documents obtained by journalists.

There is also information on the flow of eight particularly sensitive categories of chips and other electronic devices that have been deemed critical to the development of weapons, including Russian cruise missiles.