China retaliates against EU by implementing sanctions on financial institutions

China has imposed sanctions on two Lithuanian banks, fulfilling its promise to retaliate after the European Union targeted certain Chinese lenders last month over their alleged role in Russia’s war on Ukraine.

The measures affect UAB Urbo Bankas and AB Mano Bankas, according to a statement from the Chinese Ministry of Commerce on August 13, Caliber.Az. reports, citing foreign media.

Under the sanctions, Chinese organizations and individuals are prohibited from carrying out transactions, cooperation, or any other activities with the two banks.

In a separate announcement, the ministry urged the EU to value its relationship with China, correct its mistakes, and refrain from harming the country’s interests.

Olof Gill, spokesperson for the European Commission, stated that “once formally received, the EU will examine these measures carefully before determining any further steps.”

Gill added that “the EU has been engaging constructively with China regarding the sanctioned entities” and remains “open to identifying a mutually acceptable solution that could eventually allow the banks to be de-listed.”

Last month, the European Union imposed sanctions on two Chinese banks and five Chinese companies in its latest round of measures targeting Moscow. The EU cited the banks’ provision of cryptocurrency services, which undermined the intent of its sanctions.

By Nazrin Sadigova