The European Commission is looking to exempt Chinese semiconductor supplier Yangzhou Yangjie Electronic Technology (SHE:300373) from sanctions, Bloomberg News reported Thursday, citing people familiar with the matter.
The executive arm of the European Union would propose the exemption as early as this week, the report said.
European automakers lobbied for the removal of the ban after warning supply chains would be depleted in weeks if the ban stays, the news agency said, citing the sources.
The removal of the ban could be temporary until automakers could find alternative suppliers, Bloomberg reported.
The bloc included Yangjie in its 20th sanctions package on the grounds that the company is providing dual-use goods or weapons to Russia, according to the news agency.
Yangjie's technologies were allegedly found in Russian drones and glide bombs used in the war against Ukraine, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)