The European Commission is preparing to propose a temporary exemption for a Chinese semiconductor manufacturer, likely (but unconfirmed) to be Yangzhou Yangjie Electronic Technology, from the EU's 20th Russia sanctions package, Bloomberg has reported. European automakers warned that without the derogation, chip inventories would be exhausted within weeks, forcing production stoppages across the continent. The proposal, which could come as early as this week, would still require approval from all 27 EU member states.
Yangjie was one of several third-country entities added to the sanctions list when the EU adopted the package last month. According to EU sanctions filings, the Yangzhou-based company allegedly shipped over 200 consignments of dual-use technology to Russia since the invasion of Ukraine, with its components found in Russian drones and ammunition.
