China has reportedly been helping Russia sidestep Western sanctions by sending drone engines disguised as “industrial refrigeration units,” according to European security officials and documents reviewed by Reuters. These L550E engines, made by Chinese firm Xiamen Limbach Aviation Engine Co, were allegedly sent to Russian state-owned weapons maker IEMZ Kupol. The components were later used in the mass production of Garpiya-A1 attack drones, a long-range weapon deployed frequently in Ukraine.Also read: <a href="https://www.wionews.com/world/-missile-maintenance-spare-parts-and-more-us-approves-172-million-boost-to-ukraine-s-air-defences-with-hawk-missile-support-deal-1753309847779">'Missile maintenance, spare parts and more': US approves $172 million boost to Ukraine’s air defences with HAWK missile support deal</a><h2>Massive surge in Russian drone production</h2>A leaked Kupol document shows the company signed a deal with the Russian defence ministry to produce over 6,000 Garpiya drones in 2025, up from 2,000 the previous year. By April, more than 1,500 had already been delivered.Ukrainian military intelligence told Reuters that Russia is now using about 500 Garpiya drones per month. The drones are reportedly based on Iranian Shahed drones but incorporate Chinese engines and guidance systems.<h2>How the shipments were allegedly disguised</h2>Documents seen by Reuters show that after the U.S. and EU sanctioned Xiamen, a new supplier, Beijing Xichao International Technology and Trade, took over. The engines were then shipped to a Russian front company, SMP-138, and passed on to LIBSS, which supplied them to Kupol.A contract between LIBSS and Kupol explicitly stated the engines would be described as “cooling units” to avoid scrutiny. The engines travelled from Beijing to Moscow and then to Izhevsk, where Kupol is based.<h2>China denies knowing anything</h2>China’s foreign ministry said it was unaware of the engine shipments and insisted it regulates dual-use exports in line with international rules. “China has always opposed unilateral sanctions that lack basis in international law and are not authorised by the U.N. Security Council,” the ministry said in a statement to Reuters.<h2>EU calls on China to act</h2>European Commission President Ursula von der Leyen urged Beijing to use its influence over Putin to support peace talks. “China has an influence on Russia, like the European Union has an influence on Ukraine,” she said after meeting Chinese President Xi Jinping. “It is our expectation that China uses this influence to make sure that Russia is coming seriously to the negotiation table.”<h2>Peace talks make little progress</h2>Ukraine and Russia held a third round of talks in Istanbul this week. The meeting ended quickly and failed to secure a ceasefire. Russia offered temporary truces for humanitarian reasons but rejected a broader ceasefire. Kyiv has proposed a direct meeting between Presidents Zelensky and Putin by the end of August. So far, the Kremlin has not agreed.<h2>Trump threatens new tariffs on Russia and its partners</h2>US President Donald Trump warned on July 14 that Russia would face “severe” secondary tariffs if it doesn’t agree to end the war within 50 days.He added that any country continuing to buy Russian oil, such as China, could face 100% tariffs on exports to the U.S. This would raise prices for American consumers and increase pressure on Chinese&nbsp;businesses.

China has reportedly supplied Russia with drone engines disguised as "industrial refrigeration units" to skirt Western sanctions, according to European security officials and documents seen by Reuters. The

China has reportedly been helping Russia sidestep Western sanctions by sending drone engines disguised as “industrial refrigeration units,” according to European security officials and documents reviewed by Reuters. These L550E engines, made by Chinese firm Xiamen Limbach Aviation Engine Co, were allegedly sent to Russian state-owned weapons maker IEMZ Kupol. The components were later used in the mass production of Garpiya-A1 attack drones, a long-range weapon deployed frequently in Ukraine. Also read: 'Missile maintenance, spare parts and more': US approves $172 million boost to Ukraine’s air defences with HAWK missile support deal Massive surge in Russian drone production A leaked Kupol document shows the company signed a deal with the Russian defence ministry to produce over 6,000 Garpiya drones in 2025, up from 2,000 the previous year. By April, more than 1,500 had already been delivered. Ukrainian military intelligence told Reuters that Russia is now using about 500 Garpiya drones per month. The drones are reportedly based on Iranian Shahed drones but incorporate Chinese engines and guidance systems. How the shipments were allegedly disguised Documents seen by Reuters show that after the U.S. and EU sanctioned Xiamen, a new supplier, Beijing Xichao International Technology and Trade, took over. The engines were then shipped to a Russian front company, SMP-138, and passed on to LIBSS, which supplied them to Kupol. A contract between LIBSS and Kupol explicitly stated the engines would be described as “cooling units” to avoid scrutiny. The engines travelled from Beijing to Moscow and then to Izhevsk, where Kupol is based. China denies knowing anything China’s foreign ministry said it was unaware of the engine shipments and insisted it regulates dual-use exports in line with international rules. “China has always opposed unilateral sanctions that lack basis in international law and are not authorised by the U.N. Security Council,” the ministry said in a statement to Reuters. EU calls on China to act European Commission President Ursula von der Leyen urged Beijing to use its influence over Putin to support peace talks. “China has an influence on Russia, like the European Union has an influence on Ukraine,” she said after meeting Chinese President Xi Jinping. “It is our expectation that China uses this influence to make sure that Russia is coming seriously to the negotiation table.” Peace talks make little progress Ukraine and Russia held a third round of talks in Istanbul this week. The meeting ended quickly and failed to secure a ceasefire. Russia offered temporary truces for humanitarian reasons but rejected a broader ceasefire. Kyiv has proposed a direct meeting between Presidents Zelensky and Putin by the end of August. So far, the Kremlin has not agreed. Trump threatens new tariffs on Russia and its partners US President Donald Trump warned on July 14 that Russia would face “severe” secondary tariffs if it doesn’t agree to end the war within 50 days. He added that any country continuing to buy Russian oil, such as China, could face 100% tariffs on exports to the U.S. This would raise prices for American consumers and increase pressure on Chinese businesses.

China has reportedly supplied Russia with drone engines disguised as "industrial refrigeration units" to skirt Western sanctions, according to European security officials and documents seen by Reuters. The

‘Cooling units’ or drone engines: Is China secretly fueling Russia’s drone war in Ukraine? All you need to know

The European Union has also sanctioned a Gujarat-based refinery owned by Nayara Energy Ltd. as part of fresh sanctions targeting Russia’s energy sector. The sanctions were announced on Friday just as the US Congress debates tightening sanctions on purchasers of Russian crude oil, with India, China, and Brazil being named by US lawmakers as countries that could face penalties. “For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India,” said Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, in a post on X, as she listed highlights of the 18th sanctions package.&nbsp;Rosneft, a publicly listed Russian oil and gas company, has a 49.13% stake in Nayara Energy’s refinery (formerly Essar Oil Ltd.), based in Vadinar, Gujarat. The remainder is owned by SPV Kesani Enterprises Co. Ltd., and individual investors. The refinery is India’s second largest, produces 4,00,000 barrels per day, and operates more than 6,300 petrol pumps across India. The company has reportedly been in talks with Reliance Industries Ltd. for a stake sale.&nbsp;EU sanctions mean Nayara cannot export fuel such as petrol and diesel to European countries.&nbsp;‘Full-fledged sanctions’ (travel bans, asset freezes, ban on providing resources) will apply to the refinery, as per a statement from the EU.&nbsp;

<blockquote class="twitter-tweet">For the first time, we&#39;re designating a flag registry and the biggest Rosneft refinery in India. Our sanctions also hit those indoctrinating Ukrainian children. We will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow. (3/3)&mdash; Kaja Kallas (@kajakallas) <a href="https://twitter.com/kajakallas/status/1946092888221241797?ref_src=twsrc%5Etfw">July 18, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

“Each sanction weakens Russia’s ability to wage war. The message is clear: Europe will not back down in its support for Ukraine,” Kallas said in a statement. “The EU just approved one of its strongest sanctions package against Russia to date. We’re cutting the Kremlin’s war budget further,” Kallas ad.&nbsp;The new EU sanctions also include a lowering of the oil price cap, i.e., the maximum price countries can pay for Russian oil while using shipping and insurance from the advanced economies of the G7 group of countries, from $60 per barrel to $47.6 per barrel.&nbsp;&nbsp;<h2>‘There should be no double standards,’ says India on EU sanctions</h2>&nbsp;India on Friday hit back at the European Union over its sanctions on the Indian oil refinery of Russian energy giant Rosneft, stressing that there should be “no double standards” when it comes to energy trade. The Ministry of External Affairs (MEA) said India does not subscribe to any unilateral sanction measures.&nbsp;“We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations. The Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards, especially when it comes to energy trade,” said MEA Spokesperson, Randhir Jaiswal.The lowered oil price cap means Russia will be forced to sell its crude at reduced rates to buyers like India. As the second-largest purchaser of Russian oil, India stands to benefit from this move. Russian crude currently accounts for nearly 40 per cent of India’s total oil imports.&nbsp;

Nayara Energy’s refinery in Vadinar, Gujarat is India’s second largest. It produces 4,00,000 barrels per day and operates more than 6,300 petrol pumps across India. The company has reportedly been in talks with Reliance Industries Ltd. for a stake sale.

The European Union has also sanctioned a Gujarat-based refinery owned by Nayara Energy Ltd. as part of fresh sanctions targeting Russia’s energy sector. The sanctions were announced on Friday just as the US Congress debates tightening sanctions on purchasers of Russian crude oil, with India, China, and Brazil being named by US lawmakers as countries that could face penalties. “For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India,” said Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, in a post on X, as she listed highlights of the 18th sanctions package. Rosneft, a publicly listed Russian oil and gas company, has a 49.13% stake in Nayara Energy’s refinery (formerly Essar Oil Ltd.), based in Vadinar, Gujarat. The remainder is owned by SPV Kesani Enterprises Co. Ltd., and individual investors. The refinery is India’s second largest, produces 4,00,000 barrels per day, and operates more than 6,300 petrol pumps across India. The company has reportedly been in talks with Reliance Industries Ltd. for a stake sale. EU sanctions mean Nayara cannot export fuel such as petrol and diesel to European countries. ‘Full-fledged sanctions’ (travel bans, asset freezes, ban on providing resources) will apply to the refinery, as per a statement from the EU.

Nayara Energy’s refinery in Vadinar, Gujarat is India’s second largest. It produces 4,00,000 barrels per day and operates more than 6,300 petrol pumps across India. The company has reportedly been in talks with Reliance Industries Ltd. for a stake sale.

EU’s new sanctions on Russia to affect oil refinery in India’s Gujarat

Leading business associations in Ukraine have raised alarms over proposed draft legislation that aims to overhaul the mobilisation process for troops.<o:p></o:p>

The European Business Association, representing approximately 1,000 companies, emphasised the need for balance between military requirements and economic stability. <o:p></o:p>

The legislation, set for discussion in parliament, has ignited apprehension among businesses, fearing potential disruptions to the already embattled economy.<o:p></o:p>

Ukrainian businesses fear that the proposed changes to the mobilisation law could severely impact various sectors of the economy. <o:p></o:p>

Concerns range from potential staff shortages in export industries to logistical challenges such as commandeering civilian vehicles. <o:p></o:p>

The Ukrainian Business Council, representing over 100 associations, has urged for a comprehensive revision of the draft legislation. <o:p></o:p>

While acknowledging some adjustments, the council highlighted contentious proposals that could adversely affect businesses. <o:p></o:p>

These include concerns about the arbitrary seizure of private vehicles and the digital delivery of draft notices, which lack proper oversight. <o:p></o:p>

The council advocates for clearer guidelines to protect critical staff from conscription, particularly in high-skilled sectors.<o:p></o:p>

David Arakhamia, head of the ruling faction in parliament, acknowledged the complexity of the task and stressed the importance of balancing the interests of the military, businesses, and citizens. <o:p></o:p>

"The task is not easy, there will be a lot of work," he said on the Telegram messaging app.<o:p></o:p>

Business associations are advocating for meaningful dialogue with authorities to ensure their voices are heard and to find mutually beneficial solutions.<o:p></o:p>

The IT sector, a vital component of Ukraine's economy, expressed particular concerns regarding the proposed legislation. <o:p></o:p>

Reuters cited Mariia Shevchuk, head of an IT Association, who highlighted issues such as the potential impact of online call-ups and the cancellation of draft deferrals for certain individuals pursuing second degrees.<o:p></o:p>

"We strongly urge the authorities for a dialogue with business so that we can be heard. We could grow, we could pay more taxes, we could provide for the army because there are issues with donor support in general," she said.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Leading business associations in Ukraine have raised alarms over proposed draft legislation that aims to overhaul the mobilisation process for troops. The European Business Association, representing approximately 1,000 companies, emphasised the need for balance between military requirements and economic stability.

Leading business associations in Ukraine have raised alarms over proposed draft legislation that aims to overhaul the mobilisation process for troops. The European Business Association, representing approximately 1,000 companies, emphasised the need for balance between military requirements and economic stability. The legislation, set for discussion in parliament, has ignited apprehension among businesses, fearing potential disruptions to the already embattled economy. Ukrainian businesses fear that the proposed changes to the mobilisation law could severely impact various sectors of the economy. Concerns range from potential staff shortages in export industries to logistical challenges such as commandeering civilian vehicles. The Ukrainian Business Council, representing over 100 associations, has urged for a comprehensive revision of the draft legislation. While acknowledging some adjustments, the council highlighted contentious proposals that could adversely affect businesses. These include concerns about the arbitrary seizure of private vehicles and the digital delivery of draft notices, which lack proper oversight. The council advocates for clearer guidelines to protect critical staff from conscription, particularly in high-skilled sectors. David Arakhamia, head of the ruling faction in parliament, acknowledged the complexity of the task and stressed the importance of balancing the interests of the military, businesses, and citizens. "The task is not easy, there will be a lot of work," he said on the Telegram messaging app. Business associations are advocating for meaningful dialogue with authorities to ensure their voices are heard and to find mutually beneficial solutions. The IT sector, a vital component of Ukraine's economy, expressed particular concerns regarding the proposed legislation. Reuters cited Mariia Shevchuk, head of an IT Association, who highlighted issues such as the potential impact of online call-ups and the cancellation of draft deferrals for certain individuals pursuing second degrees. "We strongly urge the authorities for a dialogue with business so that we can be heard. We could grow, we could pay more taxes, we could provide for the army because there are issues with donor support in general," she said. (With inputs from Reuters)

Ukrainian businesses express concerns over proposed mobilisation law impact on economy