China imposes countermeasures on EU banks after sanctions dispute

China has taken countermeasures against two European Union banks in response to the bloc placing two Chinese financial institutions on a Russia-related sanctions list, the Chinese Ministry of Commerce announced on August 13.

Effective immediately, Lithuanian banks UAB Urbo Bankas and AB Mano Bankas are banned from carrying out transactions and cooperation with organisations and individuals within China, according to the ministry's statement, Caliber.Az reports via foreign media. 

"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 had imposed sanctions on Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank starting August 9. China has previously called the EU’s accusations against the two banks "groundless".

The EU’s decision to add Chinese firms to its Russia sanctions package in July has strained relations between the bloc and the world’s second-largest economy. European Commission President Ursula von der Leyen said trade ties have hit a "clear inflection point" following a summit with top Chinese leaders in Beijing last month.

While discussions at the summit highlighted concerns on commerce, the EU also pressed China to discourage Russia in its war against Ukraine. China, which maintains a "no limits" partnership with Russia, has consistently advocated for a political settlement to the Ukraine crisis.

By Sabina Mammadli