China announced countermeasures on Wednesday and imposed sanctions on two banks in the European Union, in retaliation for the bloc including two Chinese financial institutions in its latest round of sanctions against Russia.
Effective immediately, Lithuanian banks UAB Urbo Bankas and AB Mano Bankas are banned from carrying out transactions and cooperation with organizations and individuals within China, according to a statement from the Ministry of Commerce.
“We hope that the EU will cherish the long-term good cooperative relations formed between China and the EU and its member states in the fields of economy, trade and finance,” the ministry said in a separate statement.
It also called on the EU to “correct wrongdoings” and stop harming China’s interests and undermining China-EU cooperation.
The EU’s sanctions against Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank were implemented from Aug. 9, its document showed.
China has previously said the EU’s accusations against the two banks were “groundless.”
The EU’s move to add Chinese firms to its Russia sanctions package in July has become a point of contention as ties between the bloc and the world’s second-largest economy remain rocky.
European Commission President Ursula von der Leyen said trade ties have hit a “clear inflection point” after a summit with top Chinese leaders in Beijing last month.
Discussions highlighted concerns on commerce, but the EU had also pressed China to discourage Russia in its war against Ukraine during the meeting.
China, which shares a “no limits” partnership with Russia, has always maintained its line on seeking a political settlement of the Ukraine crisis.
NATO has in the past called China a “decisive enabler” of Russia’s war effort as its companies sold tools, equipment and microelectronics.
