The European Union has proposed fresh sanctions targeting companies in Vietnam, Turkey, and Serbia, accusing them of enabling Russia to evade existing embargoes. This forms part of the EU’s 17th package of sanctions since Russia’s full-scale invasion of Ukraine. If adopted, it would mark the first time a Vietnamese firm, who has not been publicly named, has been sanctioned by the EU for supporting the Kremlin, alongside more than 20 other companies from third countries named in the draft list.
The EU’s proposed sanctions come amid deepening economic ties between Vietnam and Russia. Last week, General Secretary of the Central Committee of the Communist Party of Vietnam, To Lam, visited Moscow, where both sides agreed to expedite negotiations and sign agreements on building nuclear power plants in Vietnam. They also pledged to enhance cooperation in the oil and gas sectors, including the supply of Russian crude oil and liquefied natural gas to Vietnam.
Vietnam has traditionally maintained close ties with Russia—closer than any other ASEAN member state. It previously abstained from voting on the UN resolution condemning Russian aggression and has continued to engage in high-level diplomatic exchanges. Before General Secretary To Lam’s recent visit to Moscow, Russian President Vladimir Putin made a state visit to Vietnam in June 2024.
Russian businesses have also been active in Vietnam, particularly in the energy sector. Notably, Zarubezhneft partnered with state-owned PetroVietnam to form the joint venture Vietsovpetro, which remains a symbol of bilateral economic collaboration.
Since the start of the conflict, the EU had already noted the possibility of circumvention of its sanctions, especially through China, but also Southeast Asian nations —particularly through the supply of dual-use goods that could bolster Moscow’s war efforts in Ukraine. In September 2024, the EU’s Special Envoy for Sanctions David O’Sullivan visited Malaysia, Vietnam, and Thailand, after which he remarked that “a lot of the product going through China is made by subsidiaries of Western companies in Southeast Asia.”
Up until now, the EU had not sanctioned any companies in the region mainly due to a lack of concrete evidence showing that firms were directly assisting Russia. It has also been difficult to track specific trade flows between Southeast Asia and Russia that might breach sanctions—especially in the case of small components like semiconductors or chips. The sanctioning of the first Vietnamese company thus comes following sufficient evidence being collected.
The proposed sanctions must still be unanimously approved by all EU Member States before they can be officially adopted.
