The European Union is set to scrap plans to restrict trade with five Chinese companies with alleged ties to Russia, as the bloc gets closer to an agreement on a stalled sanctions package targeting Moscow.

The bloc had drawn up a proposal to restrict exports to eight companies for allegedly supplying Russian firms with banned technologies. Five of those firms were removed from the list after assurances from Chinese officials, according to a person familiar with the matter. The EU is still considering plans to curb trade with three Hong Kong-based firms, the person added.

Discussions on the EU’s 11th sanctions package in the wake of Russia’s invasion of Ukraine have been stalled for weeks, as member states continue to haggle over just how tough enforcement should be.

The changes, which could still be modified again before approval by member states, were first reported by the South China Morning Post.

The EU is seeking to adapt its China strategy, aiming to balance its trade relations with reducing its reliance on the Asian nation in key areas such as critical raw materials and technology. China had threatened to retaliate if its companies were targeted, but the EU’s move suggests that it takes Beijing’s assurances seriously.

Separately, the bloc has also watered down a proposed mechanism to target countries that aren’t doing enough to prevent Russia from evading export restrictions. The main aim of the tool would be to deter governments from helping Russia.

If diplomatic pressure proves ineffective, the mechanism would give member states the power to adopt targeted export restrictions on key goods.

The scope of that provision has been narrowed following pressure from several member states including France and Germany. EU officials are hopeful that the sanctions package can be approved next week and diplomats could meet Monday morning, according to two people familiar with the issue.

The main aim of the package is to tighten loopholes and tackle circumvention. Other measures include a ban on many goods transiting through Russia as well as further trade restrictions, including on more technological goods.

The proposals also include formalizing an end to oil deliveries through the northern leg of the Druzhba pipeline, and intellectual property curbs.

(Updates with context, details from third paragraph)