China imposes countermeasures on Lithuanian banks amid EU sanctions

China has announced countermeasures targeting two Lithuanian banks in a new escalation over Europe’s latest round of sanctions tied to Russia’s war in Ukraine. In a formal move, Beijing’s Ministry of Commerce placed UAB Urbo Bankas and AB Mano Bankas on its countermeasures list, barring any financial dealings, partnerships, or other activities with Chinese entities or individuals. The action represents a direct response to the European Union’s July sanctions against Chinese lenders accused of aiding Moscow, and it underscores growing frictions in China’s economic diplomacy with the bloc.

The Chinese decision blocks all forms of cooperation between the two Lithuanian banks and Chinese counterparts, and it bars Chinese organizations or individuals from engaging with them within China. A ministry spokesperson framed the move as a necessary measure to safeguard China’s sovereignty, security, and development interests, signaling Beijing’s intention to respond firmly to what it characterizes as unjustified sanctions targeting Chinese firms. The announcement follows Brussels’ decision to add two Chinese financial institutions to its sanctions list for alleged involvement in Russia’s...