China targets 2 Lithuanian banks in response to new EU sanctions

Key Points

• China has targeted two Lithuanian banks, UAB Urbo Bankas and Mano Bankas AB, in retaliation for EU sanctions on Chinese financial institutions.
• The sanctions prohibit the Lithuanian banks from cooperating with any individuals or institutions in China.
• The EU's new round of sanctions, effective since August 9, included multiple Chinese companies allegedly involved in supporting Russia amid the conflict in Ukraine.
• China's Ministry of Commerce stated that the sanctions severely damage its legitimate rights and interests, affecting China-EU economic and trade relations.

BEIJING (AP) — China imposed sanctions on two Lithuanian banks in what it said was retaliation for the European Union including two Chinese financial institutions in its latest round of sanctions against Russia.

Lithuania's UAB Urbo Bankas and Mano Bankas AB are prohibited from having any cooperation with individuals or institutions in China, according to a statement Wednesday from the Ministry of Commerce.

The European Union adopted a new round of sanctions against individuals and companies supporting Russia in its war with Ukraine in July, which went into effect August 9. Among them were multiple Chinese companies, although China's Ministry of Commerce did not name which financial institutions were affected.

“The EU, disregarding China’s solemn position, insisted on adding two Chinese financial institutions to its sanctions list for alleged involvement in Russia, and formally implemented the sanctions on August 9," said the statement. It added the move "severely damages the legitimate rights and interests of Chinese companies, and has a serious negative impact on China-EU economic and trade relations and financial cooperation."

NATO has in the past called China a “decisive enabler” of Russia's war effort as its companies sold tools, equipment and microelectronics.