The European Union is mulling over imposing sanctions on Chinese companies that are assisting Russia's military machinery.

• European officials have previously underlined the close relationship between Moscow and Beijing.
• Despite ongoing sanctions, Russia continues to acquire Western technology, as reported by CNBC in January.
• According to research, Russia has been receiving critical components from western countries through China, Hong Kong, Turkey, and the United Arab Emirates.

The European Union is considering imposing sanctions on Chinese companies that have assisted Russia in evading Western sanctions, marking the first time mainland China businesses have been targeted since the conflict began, according to three EU officials speaking to CNBC.

The 27-member bloc is currently developing a 13th package of sanctions in response to Russia's full-scale invasion of Ukraine, which may be finalized this month to commemorate the second anniversary of the conflict.

An EU official, who wished to remain anonymous due to the confidentiality of the negotiations, stated that Chinese companies and entities from other countries, which are assisting Russia in evading sanctions, will be included in the upcoming round of measures against Russia for its conflict in Ukraine.

Another official stated that the 27 EU ambassadors will discuss the proposal at a meeting on Wednesday, with ongoing work.

According to a report from Bloomberg, the sanctions proposal includes three companies based in China.

European officials have emphasized the close bond between Moscow and Beijing. Recently, European Commission President Ursula von der Leyen stated at the World Economic Forum in Davos that "Russia's economic failure is also a result of sanctions, which have disconnected its economy from modern technology and innovation. As a result, Russia is now reliant on China."

In 2023, China's trade relationship with Russia reached a new record high of $240 billion, with Russia's purchases of Chinese cars and smartphones increasing, according to Reuters, as reported by China's General Administration of Customs in January.

Despite ongoing sanctions, Russia is still obtaining Western technology through the help of countries such as China, Hong Kong, Turkey, and the United Arab Emirates, which have been increasingly important in funneling critical components to Russia from Western countries, according to research.