China Bans Two European Banks in Retaliation for Russia-Related Sanctions
China, which maintains a “no-limits” partnership with Moscow, reaffirmed its commitment to pursuing a political resolution to the war.
Quick overview
- China's Ministry of Commerce has imposed sanctions on two Lithuanian banks in response to EU sanctions against Chinese financial institutions.
- UAB Urbo Bankas and AB Mano Bankas are now prohibited from conducting transactions with Chinese entities.
- Beijing has urged the EU to reconsider its actions, emphasizing the importance of maintaining cooperative relations.
- The sanctions are part of an ongoing dispute stemming from the EU's measures against Chinese companies linked to Russia.
China’s Ministry of Commerce has targeted two Lithuanian financial institutions in retaliation for European Union (EU) sanctions against Chinese banks accused of facilitating Russian transactions.
On Wednesday, the ministry announced that UAB Urbo Bankas and AB Mano Bankas would, effective immediately, be prohibited from conducting transactions or cooperating with organizations and individuals within China.
Beijing urged the EU to “correct its mistakes” and refrain from taking measures that “harm China’s interests” and undermine bilateral cooperation. “We hope the EU will value the long-standing, cooperative relations established between China and its member states in the areas of economy, trade, and finance,” the ministry added.
The move is a direct response to sanctions imposed on August 9 against Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank, which Brussels accuses of facilitating Russia-related operations. China has dismissed the allegations as “groundless.”
The dispute traces back to July, when the EU included several Chinese companies in its latest sanctions package against Moscow, adding yet another source of tension to an already fraught trade and political relationship.
Following a recent summit in Beijing, European Commission President Ursula von der Leyen stated that trade relations between the two powers have reached a “clear turning point.” During the meeting, the EU reiterated its call for China to use its influence over Russia to help end the war in Ukraine.
China, which maintains a “no-limits” partnership with Moscow, reaffirmed its commitment to pursuing a political resolution to the crisis in Ukraine.
China Condemns EU Sanctions on Its Companies as “Groundless”
The Chinese government expressed “deep dissatisfaction” over EU sanctions imposed two days earlier on ten Chinese entities included in the bloc’s latest measures against Russia for its invasion of Ukraine. Beijing denounced the decision as unilateral and based on “unfounded accusations.”
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