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US measures aimed at putting pressure on Russia’s Wagner group includes sanctions on a Chinese satellite company. But the firm, Spacety, denies helping Russia in the Ukraine war or working with the Wagner group. Photo: Reuters

Chinese satellite start-up named in US sanctions aimed at Wagner group denies aiding Russia in Ukraine war

  • Spacety denies breaching any foreign rules or laws and says it has not had ties with Russia since Moscow came under international sanctions
  • US Treasury says Spacety provided radar satellite imagery ‘to enable Wagner combat operations’ in Ukraine
Ukraine war
A Chinese satellite start-up has denied providing satellite imagery of Ukraine to help Russia’s invasion after the company was listed in the latest slew of US government sanctions aimed at the Russian mercenary firm, Wagner group.
The Luxembourg-based subsidiary of Changsha Tianyi Space Science and Technology Research Institute, also known as Spacety, issued a statement on Sunday after it was listed among entities hit by sanctions as part of a move against the Wagner group. The private paramilitary firm was deemed a transnational criminal organisation by the US government, according to its announcement on Thursday.

In a statement Spacety denied it had breached any foreign laws.

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“We … solemnly affirm and declare that we have been strictly abiding by the laws and regulations of relevant countries and regions in course of business development, and fully comply with the international sanctions imposed on Russia by the United States and the European Union, and never have any ties with Russia at all after international sanctions were imposed,” it said.

“Our products and services are all used for civil and commercial purposes and do not involve any military use. We have never had any commercial relationship, or made any deal, or signed any agreements with the Russian entity accused by the United States or other Russian entities, and we have never … participated in any form of military activities in support of the Russo-Ukrainian War and the Wagner group.”

Spacety, which was founded in 2016, said it was working to ensure “transparent, fair and just treatment”. It said it was eager to work with relevant government departments and would continue to abide by the laws and regulations of their operating countries.

On Monday, when the Chinese foreign ministry resumed its regular press briefings after the Chinese New Year holiday, spokeswoman Mao Ning responded to a Bloomberg article published on Tuesday. It quoted anonymous sources saying that Washington saw evidence of Chinese companies providing non-lethal military and economic aid to Russia.

“We won’t stand with folded hands, add fuel to the fire or take advantage of the situation,” Mao said of Beijing’s stance in the “Ukraine problem” – a phrase it has used since last February to address Russia’s invasion of Ukraine.

“We do not accept this kind of baseless blackmailing and will not turn a blind eye to the US damage to Chinese enterprises’ legitimate interests,” she added.

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The United States has been wary of China’s close relations with Russia after it refused to condemn the Ukraine war. Washington warned the Chinese government there would be consequences if China provided military support to Russi against Ukraine, while Beijing has constantly said it has not done so.

According to the US Treasury, Spacety has provided synthetic aperture radar (SAR) satellite imagery orders over locations in Ukraine “to enable Wagner combat operations in Ukraine”.

After the sanctions were announced last week, a spokesperson for the Chinese embassy in the US said China opposed unilateral sanctions, adding that Beijing was committed to dialogue for peace on the Ukraine issue.

Spacety’s official Chinese website says it provides short-cycle, low-cost one-stop solution services to more than 200 customers. Their Chinese customers include China Aerospace Science and Technology Corporation, Tsinghua University and Xiamen University.

There has been a growth in space start-ups in China, sparked by strong demand for satellites in the industrial and commercial sectors. However, the industry remains dominated by government and military operations.

The latest figures on its official website show that Spacety has carried out at least 14 space missions, with 25 small satellites launched into orbit. These include China’s first commercial SAR satellite, Haisea-1, and the country’s first commercial SAR network satellite, Chaohu-1.

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Spacety said it was the first Chinese commercial company to launch an SAR satellite, claiming it could provide “images of high resolution, wide coverage and continuous monitoring, and will provide customers with more efficient remote sensing services,” according to an interview Spacety founder and chief executive Yang Feng gave Spacenews in January 2021.

It is not clear how the US sanctions will specifically affect Spacety’s operations or its commercial relationships with overseas companies.

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French company ThrustMe was previously reported to be providing Spacety with its iodine electric propulsion system for orbit maintenance, collision avoidance and de-orbiting, according to a Spacenews report in 2020. Spacety has also cooperated with an Israeli start-up called SpacePharma, according to a China Daily report in 2017.

Spacety has offices in Beijing and Changsha and established its Luxembourg subsidiary in July 2019 to “sow deep into the European market” and “explore China-Europe cooperation in space”.

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