China and India included in EU sanctions

Kathmandu, December 18

India, which has been fostering close ties with Russia, is increasingly coming under scrutiny from Western nations. Having faced US sanctions a few months ago, India is now under pressure from the European Union’s (EU) latest sanctions.

The EU has implemented a new round of sanctions aimed at weakening Russia’s economy and war capabilities. The 15th sanctions package targets Russia’s “shadow fleet,” restricts technology supplies, and includes companies from countries like India, China, and Iran.

The shadow fleet refers to a group of vessels that employ covert strategies to smuggle prohibited goods. Since the onset of the Ukraine war, the EU has added several of Russia’s shadow fleet vessels to its sanctions list. These ships ignore sanctions and transport Russian oil, arms, and stolen Ukrainian grain.

According to the European Commission, 33 vessels involved in transporting Russian oil and petroleum products have been sanctioned, bringing the total to 43 vessels under EU sanctions. These ships were found trading above the price cap set by Western countries.

The shadow fleet, also referred to as the “black shadow,” has raised concerns among Western nations as these ships operate outside conventional rules and insurance systems. Some vessels are also reportedly involved in transporting weapons from North Korea to Russia.

Scrutiny on India and China

The EU’s 15th sanctions package includes 32 new companies accused of aiding Russia in the Ukraine war. Among these, 20 are Russian, 7 Chinese, 2 Serbian, and 1 each from India, Iran, and the UAE.

India’s Bengaluru-based SI-2 Microsystems Private Limited and Gurugram-based Innovio Ventures have already been subject to the EU’s export restrictions. SI-2 Microsystems was listed in the EU’s 13th sanctions package on February 23, while Innovio Ventures was included in the 14th package announced on June 24.

SI-2 Microsystems specializes in electronics, while Innovio Ventures operates in the military-industrial sector. Indian companies are accused of supplying sensitive electronic equipment and machinery to Russia, allegedly used in weapon manufacturing.

The US recently imposed similar sanctions on India. Indian officials claim neutrality in the Russia-Ukraine war but have continued purchasing discounted Russian oil. However, the EU sanctions on Indian companies indicate growing Western pressure on India.

China’s first experience with harsh EU measures

For the first time, the EU has imposed measures like travel bans and asset freezes on Chinese entities. The strengthening ties between China and Russia have displeased the US and other Western nations.

The EU sanctions have also targeted companies and individuals from Iran, Serbia, the UAE, and India, accusing them of violating sanctions to assist Russia.

Financial sector and other measures

The EU has also taken significant steps in the financial sector, supporting institutions like Belgium’s Euroclear, which manages Russia’s frozen assets.

Additionally, the EU has sanctioned Dubai-based Paramount Energy and Commodities (DMCC) and its head, Niels Troost. The company is accused of selling Russian oil at prices higher than the cap set by Western nations. The UK had previously sanctioned this company in 2023.

The EU has also targeted increasing defense cooperation between Russia and North Korea. Two senior North Korean defense officials have been sanctioned for allegedly supplying weapons and soldiers to Russia.

Next steps: 16th sanctions package

The EU is preparing its 16th sanctions package, which is expected to target Russia’s natural gas sector.

EU foreign policy chief Kaja Kallas stated, “These sanctions are aimed at weakening Russia’s war capabilities. We stand with the Ukrainian people on every front—be it humanitarian, economic, political, diplomatic, or military aid.”

The 15th sanctions package demonstrates the EU’s intent to expand its global reach, putting pressure on countries like India that maintain trade relations with Russia.

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