China chooses Lithuanian banks to respond to EU sanctions

China has introduced countermeasures against two European banks in response to the European Union's sanctions against Chinese financial institutions. About reported ministry of Commerce of the People's Republic of China.

The sanctions apply to Lithuanian UAB Urbo Bankas and AB Mano Bankas. From now on, organizations and individuals in China are prohibited from conducting transactions, cooperating or engaging in other related activities with these banks.

The EU imposed restrictions against two Chinese banks as part of the 18th package of sanctions against Russia. The European Union believes that Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank are helping Russia to circumvent existing trade restrictions.

Earlier, China said that the EU's accusations against the two banks were "groundless." Sanctions against them came into effect on August 9.

In a separate statement, the ministry expressed hope that the EU "will value relations with China, correct its mistakes and stop harming the country's interests.

Representative of the European Commission for Economic Security Olof Gill stated, that "upon official receipt of these measures, the EU will study them in detail before deciding on any additional further steps".

"The EU is already engaging constructively with China on the issue of sanctioned Chinese entities and is open to finding a mutually acceptable solution that could lead to the removal of banks from the list," Gill said.

Lithuanian commercial bank Urbo believes that the sanctions imposed on it by China will not affect its financial performance.

"Our bank does not conduct financial transactions in China and has no business relations with individuals or organizations from this country." said marius Arlauskas, the head of the financial institution's administration, told journalists.

Mano Bankas has not yet commented on the situation.

• In 2024, Lithuania expelled three employees of the Chinese embassy, claiming that they were not accredited. Earlier, Beijing downgraded diplomatic relations with the Baltic country in response to Lithuania's decision to allow the opening of a Taiwanese mission in Vilnius.