Exclusive: China Urges Ukraine to Remove Its Firms from ‘Sponsors of War’ List, According to Reuters

By Tom Balmforth, Pavel Polityuk, and Liz Lee

KYIV/BEIJING – On Thursday, China urged Ukraine to promptly remove over a dozen Chinese companies from a list of entities labeled as "international sponsors of war." This demand reflects Beijing’s desire for Kyiv to "eliminate negative impacts" associated with the designation.

This call for action follows recent discussions where China’s ambassador in Kyiv highlighted potential damage to bilateral relations stemming from the inclusion of these companies on the list, according to sources familiar with the matter.

A spokesperson from the Chinese foreign ministry expressed China’s strong opposition to the categorization of its companies and called for Ukraine to rectify the issue without specifying what negative impacts were being referenced.

While maintaining close ties with Russia, China has avoided condemning Moscow’s invasion of Ukraine. However, it has emphasized the importance of respecting the sovereignty and territorial integrity of all nations and has offered to facilitate mediation efforts in the ongoing conflict.

Ukraine has identified 48 companies worldwide, including 14 from China, as "international sponsors of war," claiming their activities indirectly support Russia’s military efforts.

One Ukrainian source noted that the Chinese ambassador warned that the situation regarding the blacklist could hurt bilateral relations. While China did not impose any direct conditions on Ukraine, it communicated its concerns regarding the list.

There are suggestions that Beijing might connect this issue to its grain purchases from Ukraine. Prior to Russia’s full-scale invasion on February 24, 2022, China was Ukraine’s largest trade partner and continues to be a significant buyer of Ukrainian grain, sunflower oil, and iron ore.

The blacklist, which does not carry legal consequences for the designated firms, criticizes what it describes as extensive collaboration between Chinese and Russian companies in sectors like oil and gas, which are vital to Moscow’s revenue.

Prominent Chinese energy firms listed include China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group), and China National Offshore Oil Corporation (CNOOC). While CNOOC and Sinopec did not respond to requests for comments, CNPC indicated that the list was not a recent development.

Ukraine’s National Agency for Corruption Prevention has deemed the blacklist a "powerful reputational tool" aimed at encouraging global supply chains to disengage from Russia.

Despite being perceived as an ally of the Kremlin, Ukraine has been cautious in its dealings with China during the conflict with Moscow. It has repeatedly sought Beijing’s involvement in peace efforts and outlined its vision for peace in various high-level international forums. China attended one such meeting in Jeddah last year but has since opted not to participate further.

Historically, China has been the primary destination for Ukrainian food exports via a UN-backed grain corridor established after the invasion, which has now ceased operations. This corridor facilitated the shipment of approximately 7.9 million metric tons of the total 30 million tons transported.

According to Ukrainian government data, approximately 30% of the country’s maritime exports, including food, metals, and ore, were directed to China under a newly established Black Sea shipping corridor from August.

With 14 listed entities, China holds the largest number on the blacklist, followed by the United States, France, and Germany, which have eight, four, and four companies, respectively.

Additionally, China reported that Vice Foreign Minister Sun Weidong met with Ukraine’s ambassador to Beijing on Tuesday to discuss mutual concerns, emphasizing the need for sincere and respectful relations between the two nations.