Commerce Imposes Sanctions on Nine Chinese Companies for Assisting Russia in its War Effort
Janet Yellen stated that “Treasury has consistently warned that companies will face significant consequences for providing material support for Russia’s war.”
In response to their involvement in supporting Russia during the conflict in Ukraine, the Biden administration is imposing sanctions on nine Chinese companies.
These companies either directly operated in the Russian technology sector or provided assistance to Russia’s defense industry, as reported by the Commerce Department.
These Chinese entities are part of a larger group of almost 300 organizations that were sanctioned on May 1 for aiding Russia’s war efforts.
Treasury Secretary Janet Yellen remarked, “Today’s actions will further disrupt and degrade Russia’s war efforts by going after its military-industrial base and the evasion networks that help supply it.”
The sanctioned companies include Zhongcheng Heavy Equipment Defense Technology Group (ZHE) and Shvabe Opto-Electronics (Shvabe Opto).
ZHE, a Chinese defense company, has provided support to blacklisted entities in Russia as well as the private military company Wagner, which operates in various regions.
Shvabe Opto has conducted numerous shipments to its Russia-based parent company, facilitating the development of combat aircraft and naval vessels.
Director of National Intelligence Avril Haines informed Congress that China, Russia, and Iran are collaborating to undermine the international order, particularly in the defense sector.
She highlighted China’s assistance to Russia’s defense industry as a significant factor in tilting the balance of power in Ukraine in favor of Moscow and reinforcing Russia’s military capabilities.
The Commerce Department expressed concerns about China and other authoritarian nations bolstering Russia’s economy to sustain its military operations in Ukraine.
It stressed that this support poses a major threat to international security and undermines the rules-based order.
