The EU is proposing to sanction companies in mainland China for the first time as part of its latest measures aimed at shutting down loopholes that allow Russia to route military technology via third countries to its weapons factories.

Three companies in mainland China, as well as four in Hong Kong and one in India, are on a 91-page document of companies and individuals who EU member states want to add to a growing sanctions list before the second anniversary of Russia’s invasion of Ukraine.

As the EU, the UK and US representatives prepare to meet in Brussels on Wednesday, a source said more tools were needed to ensure Moscow could not get around existing restrictions.

A source said: “Russia is straining every sinew to get around our sanctions but we need to do more. We need to shut down loopholes, target circumvention routes, drive down revenues further.”

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