UPDATE 1-European Commission proposes Russia sanctions reprieve for dealings with Chinese chips firm

The company, Yangzhou Yangjie Electronic, will remain on the ‌European Union's sanctions list but the temporary reprieve will ‌allow automakers to find alternative chip supplies and avoid a "severe disruption", the spokesperson said. EU countries will have to unanimously agree on ⁠the proposal for ​the measure ⁠to come into force.

The ‌European Commission proposed ​a nine-month derogation on dealings with a Chinese semiconductor company listed in ‌its 20th package of sanctions against Russia, a Commission spokesperson said on Friday. The company, Yangzhou Yangjie Electronic, will remain on the ‌European Union's sanctions list but the temporary reprieve will ‌allow automakers to find alternative chip supplies and avoid a "severe disruption", the spokesperson said.

EU countries will have to unanimously agree on ⁠the proposal for ​the measure ⁠to come into force. European automakers became more reliant on Yangzhou ⁠Yangjie Electronic to replace products from Chinese competitors that were listed in ​earlier Russia sanctions packages.

"This company was added to ⁠our sanctions list because they have significantly aided Russia’s military capabilities. Their products ⁠have ​been found in drones and glide bombs used by Russian troops in Ukraine," the spokesperson said. "The purpose ⁠of our sanctions is to change behaviour and we strive ⁠to find ⁠a balance to make sure they will not produce significant impact in the EU."