US sanctions Chinese firm accused of helping Russia’s Wagner Group

A Chinese firm has been sanctioned by the US for allegedly providing satellite imagery that aided Russia’s Wagner Group.

Spacety is alleged to have provided the data to Terra Tech, a Russian firm that supports the Kremlin-backed mercenary group, which has sent thousands of its own fighters to Ukraine and is the main target of this latest round of sanctions.

On Thursday, the US Department of the Treasury said that Spacety China and its Luxembourg subsidiary provided “satellite imagery orders over locations in Ukraine…[that] were gathered in order to enable Wagner combat operations”.

Nearly a year into Russia’s invasion of Ukraine, China has neither publicly supported nor condemned Vladimir Putin.

However, the US and other Western nations have been increasingly concerned about what support Beijing or Chinese entities might be providing to Russia – for instance, via state-owned enterprises or private companies, such as Spacety.

Bob Menendez, the chairman of the US Senate foreign relations committee, said: “I understand that there has been evidence that Chinese companies, including working through Hong Kong, have been exporting dual-use technologies including semiconductor chips.

“It seems to me that we should not forsake the potential of sanctions against China if it is providing critical assistance and it shouldn’t be able to hide behind some companies. We need to cut the head of the snake off in every way we can.”

Spacety does not appear to have direct government ties and there’s nothing to indicate that Beijing is aware of its activities. The company’s website lists a number of partners, including state-owned enterprises in space and technology as well as a government think tank.

In China, private firms generally cannot flourish without at least implicit state backing, given its tightening grip over every aspect of society under Xi Jinping, the Chinese president.

China and Russia have trumpeted their stronger ties in recent years. Mr Xi has long cultivated a relationship with Putin, and he was the last world leader that the Russian president met before the Kremlin invaded Ukraine.

Spacety, which was founded in 2016, describes itself as a “global new space company” that specialises in nano and small satellites, according to its website.

Its applications include forestry management and weather forecasting. It has also engaged in research partnerships – for instance, studying the application of small satellites for space debris removal.

Spacety did not immediately respond to an email seeking comment.

On Thursday, the US also formally designated Wagner a transnational criminal organisation. The group is headed by Yevgeny Prigozhin, a Putin ally and himself the target of multiple sanctions.