By Lily Zhou
Contributing Writer
Beijing targeted two Lithuanian banks on Wednesday in retaliation for the European Union’s latest Russian sanctions that affected two rural Chinese banks near the China-Russia border.
In an order published in state media Xinhua, the Chinese Ministry of Commerce said it’s adding Lithuania-based UAB Urbo Bankas and AB Mano Bankas to its list of sanctioned entities under the regime’s Anti-Foreign Sanctions Law.
An MOC spokesperson said the EU should “correct relevant wrong practices and stop acts that harm China’s interests and undermine China-EU cooperation.”
As of Wednesday, individuals and organizations in China are banned from having transactions and collaborations with the banks.
The ministry said the sanctions are countermeasures following the EU’s targeting of two Chinese financial institutions on July 18.
In a statement to the Financial Times, a European Commission spokesperson said it had received a notice from Beijing on Tuesday.
“Once formally received, the EU will study these measures in detail, before deciding on any additional next steps,” the statement reads.
“The EU is open to identifying a mutually acceptable solution that could ultimately lead to the delisting of the banks.”
The Council of Europe’s 18th Russian sanctions package, which was adopted on July 18 and aimed at Russian energy, banking, and military sectors, targeted 14 individuals and 41 entities, including seven entities based in mainland China or Hong Kong.
The bloc also barred 22 additional Russian banks from the EU-based specialized financial messaging services, and expanded the ban to third-country banks, including the Heihe Rural Commercial Bank and the Heilongjiang Suifenhe Rural Commercial Bank in China’s Northeast Heilongjiang Province. The restriction took effect on Aug. 9.
The 27-country bloc has said it will work on the 19th sanctions package against Russia if it doesn’t end the war against Ukraine.
“As far as Russia has not agreed to full and unconditional ceasefire, we should not even discuss any concessions,” European Union foreign policy chief Kaja Kallas said in a statement on Monday.
“The sequencing of the steps is important. First an unconditional ceasefire with a strong monitoring system and ironclad security guarantees,” she said, adding that “we will work on a 19th package of sanctions.”
In February, Kallas called the Chinese regime “a key enabler of Russia’s war of aggression against Ukraine,” and said the support “negatively affects EU-China relations.”
In July, she urged the Chinese regime to stop material support for Russia’s military industrial complex and back a cease-fire between Russia and Ukraine in a meeting with Chinese Foreign Minister Wang Yi, during which Wang raised eyebrows by saying China doesn’t want Russia to lose in the war, according to media reports.
Both the EU and the United States have sanctioned Chinese entities over their alleged supply of military components to Russia.
Beijing repeatedly denied that it provided material support for Moscow’s war against Ukraine.
Reuters contributed to this report.
