China sanctions 2 EU banks, hitting back at Europe’s measures

China sanctioned a pair of banks in the EU, fulfilling a promise to retaliate after the bloc targeted some Chinese lenders over Russia’s invasion of Ukraine.

China included UAB Urbo Bankas and AB Mano Bankas in its countermeasure list, the Ministry of Commerce said in a statement on Wednesday.

The move bans organisations and individuals in China from transactions, cooperation and other activities with the institutions.

In a separate statement, the ministry said it hoped the EU would cherish its relationship with China, correct its wrongdoing and stop harming the nation’s interests.

Last month, the European Union sanctioned two Chinese banks and five companies based in the Asian nation as part of the latest round of measures against Moscow. The EU said the banks were listed for providing cryptocurrency services that were frustrating the purpose of the sanctions.

China’s close ties with Russia had subjected its banks to similar sanctions from the US before, prompting them to re-evaluate businesses and clients.

Some of its state-owned banks tightened curbs on funding to Russian clients early last year, after the US authorised secondary sanctions on overseas financial firms that aid Moscow’s war effort.

China and Lithuania have been at odds in the past. Last year, Lithuania expelled three Chinese embassy employees, saying they weren’t accredited.

Beijing had earlier downgraded its diplomatic ties with the Baltic nation in response to Lithuania’s decision to allow the opening of a Taiwan representative office in Vilnius.

Ties between Beijing and Brussels have been strained in recent years, largely due to China’s support for Russia’s war in Ukraine.