China Retaliates with Sanctions on Lithuanian Banks After EU Moves

Beijing strikes back at Lithuania amid rising EU-China tensions over Russia’s war in Ukraine

China Retaliates with Sanctions on Lithuanian Banks After EU Moves

China has taken a strong step by imposing sanctions on two banks in Lithuania. This move is China’s way of fighting back after the European Union recently sanctioned two Chinese financial institutions over Russia’s war in Ukraine.

The two Lithuanian banks, called UAB Urbo Bankas and Mano Bankas AB, are now banned from working with any people or companies in China. This means Chinese individuals and organizations aren’t allowed to do business or cooperate with these banks anymore.

China’s Ministry of Commerce explained that this action is a direct reaction to the EU’s decision to punish Chinese banks. The EU accused those Chinese banks of helping Russia in ways that broke EU rules, particularly about moving digital money. China says the EU’s move is unfair and hurts China-EU trade relations badly.

This back-and-forth is part of the growing tension between China and the European Union. China says the EU’s sanctions damage Chinese companies’ interests and warned that this will have a negative effect on economic ties and financial cooperation between the two sides.

By targeting Lithuania’s banks specifically, China also sends a message to Europe, especially smaller countries in the EU. At the same time, China avoids direct conflict with bigger EU nations.

This is just the latest example of how the global fight over Ukraine is affecting worldwide alliances and economies. While Lithuania faces tough restrictions from China, the European Union stands firm in its sanctions aimed at supporting Ukraine and curbing Russia’s war efforts.

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UAB Urbo Bankas Mano Bankas