BEIJING – China has sanctioned two Lithuanian lenders, UAB Urbo Bankas and AB Mano Bankas, in response to the European Union’s decision last month to target Chinese financial institutions over alleged links to Russia’s war in Ukraine. The Ministry of Commerce announced Wednesday that the banks are now on Beijing’s countermeasure list, prohibiting Chinese organizations and individuals from engaging in transactions or cooperation with them. Beijing urged the EU to “cherish its relationship” with China, correct its “wrongdoing,” and stop undermining Chinese interests.
The European Commission said it will review the measures once formally notified, stressing that it remains open to a mutually acceptable solution that could result in the de-listing of the banks. The EU had sanctioned the two Chinese banks in July, accusing them of facilitating cryptocurrency services that undermined sanctions against Moscow. China’s state-owned lenders have already faced pressure from both the US and EU over their ties with Russia, with some tightening restrictions on Russian clients.
Both Urbo Bankas and Mano Bankas downplayed the impact of the sanctions, stating they have no business operations or partners in China. The move nonetheless comes amid heightened tensions between Beijing and Lithuania, particularly after Vilnius allowed Taiwan to open a representative office under its name in 2021, prompting China to downgrade diplomatic ties. Relations between China and the EU have also worsened over trade disputes and Beijing’s support for Russia in the Ukraine conflict.