Business Day

Beijing unhappy about Ukraine’s blacklisti­ng of Chinese companies

- Agency Staff /Reuters

China has told Ukraine that their bilateral relations could be damaged by Kyiv’s designatio­n of more than a dozen Chinese companies as “internatio­nal sponsors of war”, two senior Ukrainian sources with knowledge of the matter told Reuters.

The warning was communicat­ed to Ukraine at a January meeting of China’s ambassador to Kyiv with senior Ukrainian government officials, said the sources, who spoke on condition of anonymity due to the sensitivit­y of the issue.

China’s foreign ministry, the Chinese embassy in Kyiv and Ukraine’s foreign ministry did not immediatel­y respond to requests for comment.

Beijing has close ties with Moscow and has refrained from criticisin­g Russia’s invasion of Ukraine, but it has also said the sovereignt­y and territoria­l integrity of all countries must be respected. It has offered to help mediate in the war.

Ukraine has listed 48 companies globally, including 14 from China, as “internatio­nal sponsors of war” whose business activities it says indirectly assist in or contribute to Russia’s war efforts.

“The ambassador said that all this [the situation with the blacklist] could have a negative impact on our relations,” said one of the sources. The source added that China had not set any conditions or “temporary frameworks” for Ukraine but had simply expressed its view about the list.

The second source suggested that Beijing could link the matter to Chinese purchases of Ukrainian grain.

Before Russia’s invasion on February 24 2022, China was Ukraine’s biggest trade partner and it remains an important consumer of Ukrainian grain, sunflower oil and iron ore.

The blacklist, which has no legal implicatio­ns for the firms it includes, takes issue with what it describes as extensive co-operation between Chinese and Russian companies in sectors including oil and gas, the main source of revenue for Moscow.

It features Chinese energy giants China National Petroleum Corporatio­n (CNPC), China Petrochemi­cal Corporatio­n (Sinopec Group) and China National Offshore Oil Corporatio­n (CNOOC). Sinopec and CNOOC did not immediatel­y respond to requests for comment. CNPC said the list is not a new developmen­t.

Ukraine’s National Agency for Corruption Prevention describes the blacklist as a “powerful reputation­al tool for achieving the benevolenc­e of elements of global supply chains [and] the exit of internatio­nal business from Russia”.

Though China is widely seen as an ally of the Kremlin, Ukraine has been careful not to anger the world’s secondlarg­est economy throughout the war, and it has repeatedly appealed to Beijing to join Kyiv’s diplomatic efforts for peace.

Ukraine has been promoting its blueprint for peace at a series of high-level internatio­nal meetings. China attended one in Jeddah in 2023, but it has since refrained from attending.

China was the main destinatio­n for Ukrainian food exports shipped under a UN-brokered grain corridor establishe­d after Russia’s invasion but now defunct. It accounted for about 7.9-million tonnes of the total 30-million tonnes transporte­d via that route.

Under Kyiv’s new Black Sea shipping corridor establishe­d last August, government data shows, about 30% of Ukraine’s maritime exports, including food, metals and ore, were shipped to China.

With 14, China has the most companies on the blacklist, followed by the US, France and Germany which have eight, four and four respective­ly.

China said on Tuesday that Chinese deputy foreign minister Sun Weidong met with Ukraine’s ambassador to Beijing and exchanged views on issues of common concern, and that Sun had said the countries should respect each other.

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