EU Considers Nine-Month Russia Sanctions Reprieve for Key Chinese Chipmaker
European Commission Proposes Temporary Sanctions Derogation
By Julia Payne
Background on the Sanctions Proposal
BRUSSELS, May 22 (Reuters) - The European Commission proposed a nine-month derogation on dealings with a Chinese semiconductor company listed in its 20th package of sanctions against Russia, a Commission spokesperson said on Friday.
Yangzhou Yangjie Electronic's Role
The company, Yangzhou Yangjie Electronic, will remain on the European Union's sanctions list but the temporary reprieve will allow automakers to find alternative chip supplies and avoid a "severe disruption", the spokesperson said.
Approval Process for the Proposal
EU countries will have to unanimously agree on the proposal for the measure to come into force.
Impact on European Automakers
Reliance on Chinese Chipmakers
European automakers became more reliant on Yangzhou Yangjie Electronic to replace products from Chinese competitors that were listed in earlier Russia sanctions packages.
Rationale Behind Sanctions
Military Connections
"This company was added to our sanctions list because they have significantly aided Russia’s military capabilities. Their products have been found in drones and glide bombs used by Russian troops in Ukraine," the spokesperson said.
Balancing Sanctions and Economic Impact
Commission's Statement
"The purpose of our sanctions is to change behaviour and we strive to find a balance to make sure they will not produce significant impact in the EU."
(Reporting by Julia Payne;Editing by Tomasz Janowski and Emelia Sithole-Matarise)
