Swedish Foreign Minister Tobias Billström has indicated that the EU might impose additional sanctions on Chinese companies suspected of circumventing existing EU sanctions against Russia by

exporting goods through third countries.

In an interview with the leading Swedish newspaper Dagens Nyheter on August 5, Billström criticized China’s role in supporting Russia’s military actions in Ukraine.

Accusations and Call for Action

Billström stated, “China’s actions are facilitating Russia’s aggression in Ukraine.” He emphasized the need for a thorough review of the EU’s economic sanctions to ensure they effectively target entities aiding Russia's war effort. He noted that some Western goods are reaching Russia via countries that have not imposed sanctions, specifically citing China as a concern.

According to Billström, NATO reports indicate that 80% of the materials required for Russia's war efforts are either passing through China or originating from there. This situation undermines the EU sanctions intended to restrict support for Russia's military activities.

Possible Sanctions and EU Dynamics

When asked about the possibility of escalating sanctions against Chinese companies, Billström did not rule out further measures. “I do not exclude the possibility of additional steps being necessary,” he said. “Sweden is actively working to close any gaps in the existing sanctions framework to maximize their impact.”

Billström’s comments reflect a broader context of heightened rhetoric against China. This shift in tone follows the July NATO summit in Washington, where member states warned of potential actions against China if it continued to supply Russia with military-related products.

Existing Sanctions and Challenges

The US has already implemented a range of sanctions and tariffs against China. In contrast, European NATO countries have been slower to take similar actions. In June, the EU introduced a new sanctions package targeting firms that support Russia’s war efforts. This package included 61 companies, 19 of which are Chinese.

However, the imposition of further sanctions could be complicated by opposition from Hungary. Hungarian Prime Minister Viktor Orbán visited China in July without consulting his European counterparts, raising concerns about Hungary potentially undermining EU sanctions.

Billström emphasized Sweden's firm stance on maintaining the integrity of the sanctions regime. “Sweden will not accept any attempts by Hungary or others to undermine the established sanctions,” he asserted.

Trade War Concerns and National Security

Billström acknowledged that while no country benefits from a trade war, the trade relationship with China has become increasingly challenging. Sweden’s national security strategy identifies China as a significant threat, not only for its role in the Ukraine conflict but also for its intelligence and security activities within Sweden.

Additionally, concerns about sanctions evasion through other countries persist. A recent report from the IÉSEG School of Management in Lille, France, revealed that EU sanctions on Russia are being circumvented through countries like Kyrgyzstan, Kazakhstan, and Turkey, among others. Photo by U.S. Department of State, Wikimedia commons.