Ukraine designates China’s biggest oil firms as ‘sponsors of war’ for Russian joint ventures
- CNOOC Group, Sinopec Group and CNPC were added to the Ukrainian government’s register
- Ukraine agency claims that banks and insurance companies use registry for risk assessments
Ukraine has added the three biggest Chinese oil and gas producers – all state-owned companies – to its “international sponsors of war” list, spotlighting joint projects with Russia that Kyiv says help fund Moscow’s war effort.
The National Agency on Corruption Prevention (NACP), a Ukrainian government body, put China National Offshore Oil Corporation (CNOOC Group), China Petrochemical Corporation (Sinopec Group), and China National Petroleum Corporation (CNPC) on the register on Tuesday, a move that could fan tensions with Beijing.
Ukraine uses the list as a way to pressure businesses into limiting their activity with Russia, which invaded Ukraine in February 2022, in turn curbing the resources available to the Russian military.
The move boosts the number of Chinese companies on the list to 12, more than any other nationality.
The energy giants join automotive companies Zhejiang Geely Holding Group and Great Wall Motor, providers of video surveillance equipment Dahua Technology and Hikvision, Kerui Group, an industrial group involved in the energy sector, telecoms giant Xiaomi Corporation, construction behemoth China State Construction Engineering Corporation, e-commerce giant Alibaba Group, and radar company Comnav Technology.
None of the three energy companies responded immediately to requests for comment. Neither the Chinese Mission to the European Union nor the Chinese Embassy in Kyiv replied immediately to requests for comment.
NACP cited heavy involvement with the Russian government, noting that the oil and gas producers are “paying significant taxes” in Russia.
In the case of CNOOC, it referred to joint LNG projects in the Russian Arctic, one of which was personally inaugurated by Russian President Vladimir Putin.
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Sinopec was listed for its continued purchases of Russian oil and gas, as well as ownership stakes in multiple Russian energy companies.
The agency referred to CNPC’s “significant integration with Russia’s largest oil and gas companies, as well as the government of the terrorist state”.
While there are no official repercussions from being included on the list, the agency claims that banks and insurance companies use it for risk assessments.
NACP’s list has also led to diplomatic feuds in Europe, where the Hungarian government held up support packages for Ukraine over the placement of OTP Bank, a Hungarian entity, on the list.
OTP Bank was removed from the list on Monday, as Kyiv looks to unlock €500 million (US$524 million) of EU military assistance.
China has claimed neutrality in the 19-month invasion of Ukraine, but critics in Europe have pointed to its close ties with Russia and the frequent championing of Moscow’s talking points in state media as proof that it is playing a partisan role.
Chinese President Xi Jinping has spoken with his Ukrainian counterpart once since the outbreak of war, in a telephone call in April.
Beijing subsequently dispatched an envoy, Li Hui, to visit Kyiv and tour Europe. Li also represented China at peace talks in Jeddah, Saudi Arabia, in August.
