14 Mar 2022

Ukraine war: China will face consequences if it helps Russia evade sanctions - US

2:23 pm on 14 March 2022

US national security adviser Jake Sullivan, who is due to meet with China's top diplomat Yang Jiechi in Rome on Monday, warned Beijing that it would "absolutely" face consequences if it helped Moscow evade sweeping sanctions over the war in Ukraine.

Firefighters are seen at the site after airstrikes hit civil settlements as Russian attacks continue on Ukraine in Dnipro, Ukraine on March 11, 2022.

Firefighters at the site of airstrikes which hit housing as Russian attacks continue in Dnipro, Ukraine on March 11, 2022. Photo: State Emergency Service of Ukraine / Anadolu Agency via AFP

Russia has asked China for military equipment since the start of its 24 February invasion of Ukraine, sparking concern in the White House that Beijing may undermine Western efforts to help Ukrainian forces defend their country, the Financial Times and Washington Post reported on Sunday, citing US officials.

Asked about the reports, Liu Pengyu, spokesperson for China's embassy in Washington, said: "I've never heard of that."

He said China found the current situation in Ukraine "disconcerting" and added: "We support and encourage all efforts that are conducive to a peaceful settlement of the crisis."

Liu said that "utmost efforts should be made to support Russia and Ukraine in carrying forward negotiations despite the difficult situation to produce a peaceful outcome."

Sullivan told CNN on Sunday that Washington believed China was aware that Russia was planning some action in Ukraine before the invasion took place, although Beijing may not have understood the full extent of what was planned.

Now, he said, Washington was watching closely to see to what extent Beijing provided economic or material support to Russia, and would impose consequences if that occurred.

"We are communicating directly, privately to Beijing, that there will absolutely be consequences for large-scale sanctions evasion efforts or support to Russia to backfill them," Sullivan said.

"We will not allow that to go forward and allow there to be a lifeline to Russia from these economic sanctions from any country, anywhere in the world."

National Security Advisor Jake Sullivan speaks during the daily White House press briefing on 13 January.

Jake Sullivan says the US is keeping up its dialogue with China to ensure there is no misunderstanding over Russia. Photo: 2022 Getty Images

A senior Biden administration official said the war in Ukraine and its impact on regional and global security would be a "significant topic" during Sullivan's meeting with Yang, given China's moves to align "itself with Russia to advance their own vision of the world order".

The meeting, which had been planned for some time, is part of a broader effort by Washington and Beijing to maintain open channels of communication and manage competition between the world's two largest economies, the official said.

No specific outcomes were expected, the source added, speaking on condition of anonymity.

Wang Huiyao, head of a Beijing think tank and adviser to the Chinese government, warned of "an escalatory spiral" in a column published in the New York Times on Sunday, and said China was "uniquely positioned to act as a neutral mediator between a Western-supported Ukraine and Russia" to end the war.

"Unpalatable as some in the West may find the idea, it is time to offer the Russian leader an off-ramp with China's help," Wang wrote.

The United States on Saturday said it would rush up to $US200 million ($NZ293m) worth of additional weapons to Ukrainian forces as they try to defend against Russian shelling.

KYIV, UKRAINE - FEBRUARY 25: Ukrainian servicemen stand on patrol at a security checkpoint on February 25, 2022 in Kyiv, Ukraine.

Ukrainian soldiers on the streets of the capital, Kyiv. Photo: 2022 Getty Images

Washington and its allies have imposed sweeping, unprecedented sanctions against Russia and banned its energy imports, while providing billions of dollars of military and humanitarian assistance to Ukraine.

Individually and together they have appealed to China, Gulf nations and others that have failed to condemn the Russian invasion to join in isolating Russia from the global economy.

Beijing, a key trading partner of Russia, has refused to call Russia's actions an invasion, although Chinese President Xi Jinping last week did call for "maximum restraint" in Ukraine after a virtual meeting with German Chancellor Olaf Scholz and French President Emmanuel Macron.

Xi also expressed concern about the impact of sanctions on global finance, energy supplies, transportation and supply chains, amid growing signs that Western sanctions are limiting China's ability to buy Russian oil.

However, Hu Xijin, former editor-in-chief of the state-backed Chinese Global Times newspaper, said on Twitter: "If Sullivan thinks he can persuade China to participate in sanctions against Russia, he will be disappointed."

Ukraine war may impact on China economy - IMF

International Monetary Fund managing director Kristalina Georgieva last week said the crisis could also see China miss its 5.5 percent growth target this year. She said she had spoken with China's top central banker and expected mounting pressure on Russia to end the war.

While in Rome, Sullivan will also meet with Luigi Mattiolo, diplomatic adviser to Italian Prime Minister Mario Draghi, to continue coordinating the strong global response to Russian President Vladimir Putin's "war of choice," the US official said.

Washington and the Group of Seven advanced economies on Friday ratcheted up pressure on Russia by calling for revoking its "most favoured nation" trade status, which would allow them to jack up tariffs on Russian goods.

Trade made up about 46 percent of Russia's economy in 2020, much of that with China, its biggest export destination.

- Reuters

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