For the first time, the European Union plans to sanction a Vietnamese company for allegedly assisting Russia in bypassing trade restrictions, as part of its 17th sanctions package since the Ukraine invasion, the Financial Times is reporting.
The article notes that:
- A Vietnamese company is among about a dozen in third countries identified by the EU as helping Russia evade sanctions. Others include firms in Turkey, Serbia, the UAE, and Uzbekistan.
- If approved, this would mark the first instance of Vietnam being directly sanctioned by Brussels in relation to the Russia–Ukraine conflict.
- The inclusion signals a broadening of EU enforcement beyond Europe and traditional allies, putting third-country supply chains under scrutiny.
This move puts Vietnam in the crosshairs of major geopolitical enforcement actions, highlighting the growing risks for Vietnamese firms working with Russian firms. Of note, Vietnam-Russia trade totalled just shy of US$4.6 billion in 2024 an increase of 26 percent compared to 2023.
See also: How to Start a Business in Vietnam