**China Imposes Sanctions on EU Banks in Retaliation for Ukraine Measures**
China has sanctioned two banks in the European Union, fulfilling its commitment to respond after the bloc imposed restrictions on certain Chinese financial institutions due to Russia’s invasion of Ukraine. The Ministry of Commerce announced on Wednesday that UAB Urbo Bankas and AB Mano Bankas have been added to China’s list of countermeasures. This action prohibits Chinese organizations and individuals from engaging in transactions, cooperation, and other activities with these banks.
In a separate statement, the ministry expressed hope that the EU would value its relationship with China, rectify its mistakes, and cease actions that undermine China’s interests. Last month, the European Union sanctioned two Chinese banks and five companies from China as part of its ongoing measures against Moscow, citing the banks’ provision of cryptocurrency services that were seen as undermining the sanctions’ effectiveness.
China’s close relationship with Russia has previously led to similar sanctions from the United States, prompting Chinese banks to reassess their business dealings and client relationships. Some state-owned banks in China began tightening funding restrictions for Russian clients early last year, following the U.S. authorization of secondary sanctions on foreign financial institutions supporting Russia’s military efforts.
The diplomatic relationship between China and Lithuania has been contentious, particularly after Lithuania expelled three Chinese embassy staff last year, claiming they were unaccredited. In response, Beijing downgraded its diplomatic ties with Lithuania following the Baltic nation’s decision to permit the establishment of a Taiwan representative office in Vilnius. Overall, relations between Beijing and Brussels have deteriorated in recent years, primarily due to China’s backing of Russia’s actions in Ukraine.
**FAQ**
**What prompted China’s sanctions on EU banks?**
China’s sanctions on EU banks were a direct response to the European Union’s earlier sanctions against Chinese financial institutions for their involvement in cryptocurrency services that allegedly undermined sanctions against Russia.
