EU Sanctions Against China: A Threat to Economic Ties and Financial Cooperation

China's Ministry of Commerce spokesperson expressed strong opposition to the EU's decision to include Chinese entities in its sanctions against Russia. The spokesperson criticized the EU's actions as contradictory to consensus reached between China and EU leaders, and warned that it will undermine economic and trade ties between the two countries. China urges the EU to cease its practice of including Chinese entities in sanctions and will take necessary measures to protect the rights and interests of Chinese companies and financial institutions.

The European Union (EU) has implemented its 18th sanctions package against Russia, aimed at further restricting the country's revenues and supporting the ongoing conflict in Ukraine. The new measures, approved on July 18, 2025, include additional banking limitations, restrictions on fuel products derived from Russian crude oil, and a lower price ceiling for Russian oil exports [3].

One of the key targets of these sanctions is Rosneft, Russia's state-owned oil company, which owns a 49.13% stake in India's Nayara Energy refinery. Rosneft has strongly condemned the sanctions, labeling them "unjustified" and "illegal," and warning that they threaten India's energy security [2]. The EU's decision to include Chinese entities in its sanctions has also drawn strong opposition from China's Ministry of Commerce spokesperson, who criticized the move as contradictory to the consensus reached between China and EU leaders. The spokesperson warned that the EU's actions could undermine economic and trade ties between the two countries [4].

The new sanctions package includes a reduced oil price ceiling, which is expected to be set between $45 and $50 per barrel, down from the previous $60 cap. This measure is intended to compel Russia to offer its crude at lower prices to nations like India, potentially benefiting the country through cheaper crude [4]. However, India faces uncertainty regarding continued imports due to possible US intervention.

The effectiveness of these sanctions remains debated. While critics question their influence on Putin's policies, advocates argue that they significantly strain Russia's economy and budget. Supporters also state that without sanctions, Russia might have won the Ukraine conflict long ago [3].

The EU's latest sanctions package is part of a broader strategy to cut off Russia's financial resources and support Ukraine. However, the inclusion of Chinese entities in these sanctions has raised concerns about the potential impact on EU-China trade relations. As the EU continues to implement these measures, it will be important to monitor their effectiveness and the potential economic and political fallout.

References:
[1] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1840
[2] https://eurasiabusinessnews.com/2025/07/20/russia-rosneft-criticizes-eu-sanctions-against-indias-nayara-refinery/
[3] https://news.az/news/eu-implements-18th-sanctions-package-on-russia
[4] https://timesofindia.indiatimes.com/business/india-business/russia-crude-oil-restrictions-eu-imposes-sanctions-on-rosnefts-india-refinery-lowers-oil-price-cap-how-it-may-benefit-india/articleshow/122766450.cms