G7 promises new sanctions against entities in China helping Russia

The Group of Seven (G7) countries said they would continue to take measures against entities in China and other countries that financially support the Russian military machine in its war of aggression against Ukraine.

Source: G7 declaration, as reported by European Pravda 

Details: The leaders of the G7 states highlighted that this primarily concerns financial organisations and other businesses in China that help Russia acquire equipment for its defence industry.

In this regard, the G7 emphasised that entities – particularly financial institutions  –  that aid the Russian Federation in obtaining goods or equipment for its defence industry, are supporting actions that undermine Ukraine's territorial integrity, sovereignty, and independence.

"Accordingly, we will impose restrictive measures consistent with our legal systems to prevent abuse and restrict access to our financial systems for targeted individuals and entities in third countries, including Chinese entities, that engage in this activity", states the declaration. 

The G7 countries also promised to take "robust actions" against entities that assist the Russian Federation in evading their sanctions, including imposing "severe" fines on anyone who does not immediately cease providing material support for Russian aggression, as well as strengthening domestic use and intensifying interaction with business.

"We call on financial institutions to refrain from supporting and profiting from Russia’s war machine. We will take further steps to deter and disrupt this behaviour," the G7 emphasised.

At the same time, the G7 agreed to improve the efficiency of the oil price limitation strategy by boosting compliance and assuring its implementation, while striving to maintain market stability.

"We will take steps, including sanctions and innovative enforcement activities leveraging respective geographies, to combat Russia’s use of deceptive alternative shipping practices to circumvent our sanctions by way of its shadow fleet", affirms the declaration. 

Furthermore, the G7 has pledged to impose additional sanctions on those who assist in the transportation of Russian oil, as well as networks established by the Russian Federation to profit from price violations or oil sales through alternative service providers.

The G7 has promised to limit Russia's future energy income, stifling the development of new energy projects and disrupting access to the commodities and services that these projects require.

"We will continue our efforts to reduce Russia’s revenues from metals", added the leaders.

Earlier, the US Treasury Department had reportedly uncovered more than a dozen schemes to circumvent sanctions against Russia's defence industrial base and placed restrictions on more than 90 foreign individuals and entities, mostly from China and Türkiye.

As previously stated, the US Treasury announced the expansion of the secondary sanctions system against Russia.

It was also revealed that the United States will impose additional sanctions to limit the supply of semiconductor chips and other items to the Russian Federation, targeting organisations and networks in China and other countries.

As reported by Reuters, US officials expect the G7 to issue a new and strongly-worded warning to small Chinese banks this week to avoid assisting Russia in evading western sanctions.

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