China announced today restrictions against two European Union banks in response to EU sanctions due to the war in Ukraine, which last month targeted, for the first time, two small Chinese financial institutions near the Russian border.
The measure takes immediate effect and applies to UAB Urbo Bankas and AB Mano Bankas, both based in Lithuania.
In a statement, China’s Ministry of Commerce explained that the decision comes after the inclusion, on July 18, of two Chinese financial institutions on the sanctions list of the 18th package of restrictive measures adopted by the EU in the context of the conflict in Ukraine.
According to the statement, Beijing considers that the European sanctions “seriously violate” international law and the basic principles of international relations and “harm” the legitimate rights and interests of Chinese companies.
The countermeasures include the prohibition for organizations and individuals in Chinese territory to carry out transactions, cooperation, or other activities related to the two targeted European banks.
In July, the EU approved a new package of sanctions in the context of the war in Ukraine that, among other provisions, for the first time included two small Chinese banks on the restrictive measures list: the Suifenhe Rural Commercial Bank and the Heihe Rural Commercial Bank, both located near the Russian border.
Brussels justified the decision by claiming that these entities had undermined the purpose of the European sanctions against Moscow.
Since the beginning of the conflict in Ukraine, Beijing has maintained an ambiguous position, calling for dialogue between parties but without explicitly condemning the Russian invasion or adhering to the sanctions imposed by the West, while at the same time deepening exchanges with Moscow.
