Before being implemented, EU penalties must have the support of every member state and may vary before then.

According to the report, some of the companies on the list—which includes those in Hong Kong, Serbia, India, and Turkey—are also being targeted for the first time.

In response to allegations that roughly twenty-two companies—three of which are based in China—are aiding Russia’s military operations in Ukraine, the European Union has put forth new trade restrictions.

If approved, it would mark the first time since Russia’s invasion of Ukraine that the EU has placed limits on businesses operating in mainland China. According to a draft of the proposal reviewed by Bloomberg, the list includes companies in Hong Kong, Serbia, India, and Turkey, some of which are also being targeted for the first time. The businesses are

China is the EU’s largest market for automakers, including Volkswagen AG, therefore the matter is crucial for Germany as well as the EU, which regards Beijing as one of its most significant trading partners.

Adoption of EU sanctions requires the support of all member states, and they are subject to revision before then.

A commission spokesman declined to offer commentary on the plan. China’s embassy in Brussels did not promptly return a message.

According to the paper, the enterprises primarily involved in technology and electronics are charged with “contributing to Russia’s military and technological enhancement or to the development of Russia’s defence and security sector.”

While visiting Beijing in April, Commission President Ursula von der Leyen cautioned Chinese President Xi Jinping against getting

The businesses mostly import electronics and technologies that are prohibited and then reexport the products to Russia.

The European Union has also suggested penalties against over 110 individuals and organisations as part of a set of measures to commemorate two years since Russia invaded Ukraine.