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Pro-Russian separatists walk towards destroyed war memorial at Savur-Mohyla, a hill east of the city of Donetsk.(Reuters)

China has said it opposed any new EU sanctions against Russia over accusations it is fuelling the separatist rebellion in eastern Ukraine.

The European Union announced plans on Sunday to tighten sanctions against the Kremlin, a move that was welcomed by Washington.

Beijing said that the European Union's plan to implement fresh economic penalties against Russia would complicate the crisis.

"A political solution is the only way out, sanctions do not help to solve the underlying problems in Ukraine," said China's foreign ministry spokesman Qin Gang.

"It may lead to new and more complicating factors."

In a bid to remain neutral, China has remained relatively quiet over Russia's behaviour in Ukraine since it annexed the peninsula of Crimea, neither endorsing nor condemning its ally's actions.

Qin called on all parties to "avoid taking further actions that could lead to an escalation of tensions."

The EU and US have imposed a raft of incremental sanctions against Moscow since March. The latest measures, passed in late July, targeted Russia's arms, defence and energy industries.

While sanctions have thwarted economic growth and sparked a rush of capital flight from Russia, they have proved less effective in curbing the violence in eastern Ukraine.

See the original post:
China Warns European Union Against Fresh Sanctions on Russia

By Henning Gloystein

LONDON Mon Sep 1, 2014 2:36pm BST

European flags are hung outside the European Commission headquarters in Brussels January 22, 2014.

Credit: Reuters/Yves Herman

LONDON (Reuters) - The European Union could ban gas exports and limit industrial use as part of emergency measures to protect household energy supplies this winter, a source told Reuters, as it braces for a possible halt in Russian gas as a result of the Ukraine crisis.

Russia is Europe's biggest supplier of oil, coal and natural gas, and its pipelines through Ukraine are currently the subject of political manoeuvring - not for the first time - as Europe and Moscow clash over the latter's military action in Ukraine.

Kiev is warning that Russia plans to halt gas supplies while Moscow says Ukraine could siphon off energy destined for the European Union - which has just threatened new sanctions if Moscow fails to pull its forces out of Ukraine.

While buyers of oil and coal can find new suppliers relatively quickly, southeast Europe receives most of its gas from Kremlin-controlled Gazprom (GAZP.MM).

Tankers from Qatar and Algeria bring liquefied natural gas (LNG) to Europe via ports along the Atlantic and Mediterranean oceans, but European buyers often re-sell those cargoes abroad for higher prices rather than supplying their domestic market.

A source at the EU Commission said it was considering a ban on the practise of re-selling to bolster reserves.

More here:
Europe drafts emergency energy plan with eye on Russia gas shut-down

BEIJING: China opposed additional sanctions against Russia on Monday over accusations Moscow was sending troops into Ukrainian territory, saying the European Union's push to draw up more measures would only complicate the crisis.

The European Union on Sunday threatened Russia with new trade sanctions, but sharp divisions among leaders at a summit in Brussels left the timing of any measures uncertain.

"A political solution is the only way out, sanctions do not help to solve the underlying problems in Ukraine," Chinese Foreign Ministry spokesman Qin Gang said at a daily news briefing. "It may lead to new and more complicating factors."

China has adopted a cautious response to the crisis, not wanting either to alienate key ally Russia or comment directly on the referendum in which Crimea voted overwhelmingly to join Russia, lest it set a precedent for its own restive regions, like Tibet.

But China has also said it would like to continue to develop "friendly cooperation" with Ukraine and that it respects the ex-Soviet state's independence, sovereignty and territorial integrity.

As a permanent member of the Security Council, China has used its veto power many times over the imposition of sanctions.

Qin called on the parties to remain calm and restrained and "avoid taking further actions that could lead to an escalation of tensions".

The Ukraine crisis erupted nine months ago when former Ukrainian President Viktor Yanukovich rejected a free trade deal from the EU, triggering a popular uprising in which he was overthrown.

Moscow, denouncing the new Kiev government as "fascists" set on harming the interests of Russia and Ukraine's large Russian-speaking minority, seized and annexed Crimea and has since been supportive of rebels in the east of the country who have set up breakaway republics.

More than 2,000 people have been killed, with the toll rising sharply since the Ukrainian President Petro Poroshenko, elected in May, launched an offensive that seemed close to smothering the rebellion before Russian armour and troops began a counter-attack last week.

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China opposes proposed European Union sanctions against Russia

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