European Union preparing to ban Indian and Chinese companies, accused of helping Russia

The European Union is preparing to ban companies from many other countries including Indian and Chinese. The European Union alleges that these companies are helping Russia in the fight against Ukraine. The European Union has proposed a ban on these companies and if this proposal is passed by all the member countries, it will be the first time that the European Union will impose a direct ban on a Chinese company.

Banned companies will not be able to do business with European companies
According to media reports, the companies on which the European Union is preparing to ban include companies from Hong Kong, Serbia, India, Turkey and China. This news has come out quoting media reports. However, the names of the companies have not been disclosed due to legal reasons. The ban on companies will mean that the companies which are banned will not be able to do business with European companies in future. The European Union alleges that Russia is purchasing banned goods with the help of these third party companies, which it is not able to get directly due to sanctions.

European Union is hesitant to ban Chinese companies
The EU had earlier proposed sanctions on several Chinese companies over allegations of helping Russia in the war against Ukraine, but that proposal was rejected after protests by several member states. China had also promised that it would not help Russia. Let us tell you that China is an important trading partner of many European countries. China is the biggest market for cars from Germany, a key EU country. This is the reason why many countries of the European Union are hesitant in imposing restrictions on Chinese companies.

Most of the companies that are set to be banned are technology and electronics companies. The companies are accused of helping Russia become militarily and technologically strong and contributing to the development of Russia’s defense and security sector. In April last year, European Union President Ursula von der Leyen visited Beijing and during her meeting with Chinese President Xi Jinping, expressed her concerns about the Russia-Ukraine war.

The companies on which the European Union is preparing to ban include three Chinese companies, one Indian, one Sri Lankan, companies from Serbia, Kazakhstan, Thailand, Turkey and Hong Kong.