China remains a “very big problem” because of the way it helps circumvent EU sanctions against Russia, with no signs that the practice is abating, the EU’s chief sanctions envoy, David O'Sullivan, said in exclusive comments to Euronews.

“We raise it regularly at the highest level with the Chinese authorities but you know their answer, which is to say that they don't feel they're doing anything wrong, so we still have to take unilateral action against Chinese companies and financial institutions,” O'Sullivan said.

As Russia continues its illegal invasion of Ukraine, now grinding into its fifth year, Europe continues to sharpen its tools to inflict the most damage against Moscow’s economy to slow its war machine.

But the bloc has also been impacted by the war, with a Russian drone crashing into an apartment complex near Romania’s border with Ukraine on Friday, resulting in the injury of two people.

Diplomats in Brussels say the incident has quickened the pace of the 21st sanctions package, which is under preparation, highlighting the need to hit the Kremlin where it hurts for both the drone incursion as well as strikes on the war-torn nation.