Ukraine bans China's firms for helping Russia make missiles

(Reuters) -Ukraine imposed sanctions on three Chinese companies on Friday claiming they were involved in production of advanced Iskander missiles, a day after President Volodymyr Zelenskiy alleged that China had been supplying weapons to Russia.

China's foreign ministry earlier on Friday dismissed Zelenskiy's accusation as groundless. While maintaining close economic ties with Russia during Moscow's three-year war in Ukraine, China has sought to project an image of neutrality and denies any involvement in the war.

Zelenskiy's administration on Friday published an updated list of sanctioned entities. The list, which also includes Russian companies, named Beijing Aviation And Aerospace Xianghui Technology Co. Ltd, Rui Jin Machinery Co. Ltd, and Zhongfu Shenying Carbon Fiber Xining Co. Ltd, all described as registered in China.

Zelenskiy said that the Chinese companies hit with sanctions were involved in the production of Russian Iskander missiles. Russia widely uses the nuclear-capable short-range ballistic missile system in the conflict.

On Friday, Ukraine said Iskander missiles had struck Kharkiv, a city in northern Ukraine, killing one and injuring more than 100 people.

"Today, we have expanded our Ukrainian sanctions against nearly a hundred more entities - natural and legal persons - most of whom are involved in the production of such missiles -Iskanders - like those that struck our Kharkiv," Zelenskiy said in a statement on X.

"Many of these entities are Russian, but unfortunately, some are also from China," he said.

Sanctions ban companies from doing business in Ukraine and freeze their assets there.

Ukraine exported $8 billion of goods to China in 2021, mostly raw materials and agricultural products, while it imported from China just under $11 billion, mainly in manufactured goods, according to the Ukrainian government.

On Thursday, Zelenskiy told reporters in Kyiv his government had evidence that Chinese firms were supplying what he described as artillery and gunpowder to Russia, and that Chinese entities are making some weapons on Russian soil.

He did not offer any evidence for the assertion.

A week earlier, Zelenskiy had said Chinese nationals were fighting on Russia's side in the war with Ukraine, including two who had been taken prisoner. A Chinese diplomat was summoned to the Ukrainian foreign ministry to provide an explanation.

Ukrainian and U.S. officials later said the men had signed up on their own initiative for money.

(Reporting by Yuliia Dysa, Christian Lowe and Maria TsvetkovaEditing by Peter Graff and Ros Russell)

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