The EU wants to impose sanctions on two small Chinese banks for trading with Russia

The European Union has proposed sanctions against two small Chinese banks for helping Russia circumvent existing trade restrictions imposed by the bloc, Bloomberg reports.

Under the proposed sanctions, EU financial institutions will be prohibited from conducting any transactions with two regional lenders located near China's border with Russia. Bloomberg does not name the banks, as the measures have not yet been published.

The banks will be added to a list of financial institutions that allegedly helped Moscow “process transactions or provide export financing for trade transactions” that circumvent EU sanctions, according to one of the documents. Some banks on the list also provided “crypto asset services” that help Russia evade sanctions, the document said.

A European Commission spokesperson declined to comment on the documents. China has been a key enabler of Russia's war in Ukraine, with its companies supplying Moscow with restricted parts and technology needed to produce weapons. The proposed package would also add several Chinese firms to those already under EU sanctions.

Beijing has repeatedly denied supporting Moscow's military efforts.

Chinese Foreign Ministry spokesman Lin Jian said at a regular briefing in Beijing on Thursday that cooperation between Chinese and Russian companies “is in line with market and economic rules.”

“It is not directed against any third party and should not be influenced by any third party,” he added.

Source: Radio Svoboda