China has warned Ukraine that bilateral relations between the two countries could deteriorate if Kyiv recognizes Chinese companies as “international sponsors of terrorism” because of their dealings with Russia, Reuters reported on Thursday, citing two sources familiar with the talks.

Two sources, who spoke on condition of anonymity because of the confidential nature of the file, said the warning was conveyed to Ukraine last month during a meeting between China’s ambassador to Kyiv and two senior Ukrainian government officials.

The Ministry of Foreign Affairs of China, the Embassy of the People’s Republic of China in Kyiv and the Ministry of Foreign Affairs of Ukraine refused to comment on this information to Reuters.

Beijing maintains close ties with Moscow and has refrained from condemning the invasion launched by Vladimir Putin on February 24, 2022, declaring “neutrality” in the conflict and offering to mediate peace talks.

Ukraine has designated 48 foreign companies, including 14 from China, as “international sponsors of terrorism,” saying their activities indirectly aid or contribute to Moscow’s military efforts.

Kyiv is concerned that Beijing may impose conditions on the import of Ukrainian wheat

“The ambassador said that all of this (rather than the blacklist situation) could have a negative impact on our relationship,” one of the sources told Reuters, adding, however, that the ambassador did not make any demands to remove the companies. listed or otherwise.

But a second source suggests that Beijing could use this topic in discussions about buying Ukrainian wheat.

Before the start of the full-scale Russian invasion, China was Ukraine’s largest trading partner and to this day remains the main consumer of Ukrainian wheat, sunflower oil and iron ore.

The blacklist drawn up by Kyiv has no legal consequences for the companies on it, but the National Agency for the Prevention of Corruption, the Ukrainian institution that compiles it, says it is a “powerful reputational tool” whose ultimate goal is to convince sub- entities to leave Russia or stop cooperation with the “aggressor country”.

Chinese energy companies were included in the “black list” of Ukraine.

Chinese companies included in the list include China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group) and China National Offshore Oil Corporation (CNOOC). CNPC told Reuters the existence of the list was not a new development, while the other two companies declined to comment.

Although China is widely seen as an ally of the Kremlin, the government in Kyiv has been careful not to anger the communist regime in Beijing and has repeatedly called on it to join its diplomatic efforts to end the hostilities.

Trade data released by Ukrainian authorities show that 30 percent of the country’s seaborne exports reach China through a free passage corridor established in the Black Sea last August, with exports including food, metals and iron ore.

The largest number of companies on Kyiv’s blacklist is in China, followed by the USA (8), France (4) and Germany (4).

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