China has announced sanctions against two Lithuanian banks, UAB Urbo Bankas and Mano Bankas AB, in retaliation for the European Union’s recent inclusion of Chinese financial institutions in its latest sanctions package against Russia.
According to China’s Ministry of Commerce, the sanctions prohibit any cooperation between the two Lithuanian banks and Chinese individuals or institutions. The ministry said the move responds to the EU’s decision to sanction two unnamed Chinese banks for alleged involvement in supporting Russia’s war in Ukraine. Those EU sanctions took effect on August 9.
“The EU, disregarding China’s solemn position, insisted on adding two Chinese financial institutions to its sanctions list… severely damaging the legitimate rights and interests of Chinese companies, and [having] a serious negative impact on China-EU economic and trade relations and financial cooperation,” the ministry said in its statement.
The EU’s latest sanctions package, adopted in July, targeted individuals and companies accused of aiding Russia’s military effort. While China has not specified which of its financial institutions were sanctioned, NATO and Western officials have long accused Beijing of acting as a “decisive enabler” of Russia’s war through the sale of tools, equipment, and microelectronics.
Lithuania’s relationship with China has been tense in recent years, particularly after Vilnius deepened ties with Taiwan and criticized Beijing’s human rights record. This latest development adds another layer of strain to China-EU relations as Beijing pushes back against measures targeting its companies over their role in the Ukraine conflict.
