New Iron Curtain? EU Weighs Sanctions on China Over Russian Energy Purchases

EU officials are discussing potential sanctions against China and other third countries for purchasing Russian oil and gas, according to the Financial Times, citing three people familiar with the matter.

One of the sources said the EU’s secondary sanctions proposals are at a “very early stage” and are unlikely to be adopted unless the US also targets China’s energy imports.

Secondary sanctions are highly controversial and would require unanimous approval from all 27 EU members — with Hungary and potentially Slovakia expected to oppose the measure.

The EU’s move is seen as a response to US President Donald Trump’s recent comments. Trump said he was prepared to coordinate with the EU on new measures against Russia, citing Vladimir Putin’s unwillingness to negotiate peace.

EU-China Relations Deteriorate, Trade Tensions Rising

China is the EU’s second-largest trading partner, behind only the US. Concerned about Chinese retaliation against European companies, the EU has been reluctant to impose broad sanctions on Beijing. Still, small-scale measures have already been taken over China’s imports of Russian energy and ongoing trade disputes.

The EU previously sanctioned two small Chinese banks, accusing them of facilitating banned trade with Russia. It also imposed tariffs on Chinese-made electric vehicles.

German chancellor Friedrich Merz warned that Europe’s reliance on China for critical minerals and raw materials “makes us vulnerable to blackmail,” stressing the importance of trade diversification.

On September 5, China’s Ministry of Commerce ruled that pork and pork by-products from the EU were being dumped and harming domestic producers. Starting September 10, imports from the EU will face temporary deposits — effectively tariffs — ranging from 15.6% to 62.4% depending on the company.

This move is seen as retaliation and could escalate trade friction between China and the EU.

Effectiveness of Sanctions in Doubt

After Russia’s full-scale invasion of Ukraine in 2022, China surpassed the EU as the largest importer of Russian oil. According to energy consultancy Kpler, China imported about 2 million barrels per day last year.

Historically, Western sanctions have failed to dampen China’s demand for cheap, sanctioned crude. Since 2019, the US has imposed secondary sanctions on Chinese shipping firms, traders, and refineries for continuing to import oil from Iran, but these measures have had little impact on trade.