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China sanctioned two Lithuanian banks on Wednesday. The move retaliates against EU sanctions on Chinese lenders over crypto services to Russia. China’s Ministry of Commerce banned UAB Urbo Bankas and AB Mano Bankas from doing business in China on August 13, 2025. Chinese organizations and individuals cannot transact or cooperate with these banks. Lithuania Becomes Target Despite Limited Business Ties The action follows the EU’s July 18 sanctions on two Chinese financial institutions. Brussels targeted them in its 18th round of Russia sanctions. The EU said the Chinese banks provided cryptocurrency services that undermined the effectiveness of sanctions. Both sanctioned banks are based in Lithuania. According to a Bloomberg report, neither conducts significant business in China. UAB Urbo Bankas CEO Marius Arlauskas said his bank has no Chinese business relationships. AB Mano Bankas also confirmed it doesn’t operate actively in China. The sanctions will have no impact on daily operations, suggesting China chose symbolic targets rather than economically damaging ones. Tensions Reflect Broader China-Lithuania Dispute Beijing’s choice of Lithuanian banks reflects ongoing diplomatic tensions. China downgraded ties after Lithuania allowed a Taiwan representative office in Vilnius. Last year, Lithuania expelled three Chinese embassy employees for lacking proper accreditation. The banking sanctions extend China’s economic pressure campaign against Lithuania. Beijing considers Taiwan its territory and opposes international recognition. The European Commission said it will study China’s measures before deciding on the next steps. EU spokesman Olof Gill noted that Brussels remains open to finding mutually acceptable solutions. The EU has been engaging with China on the issue of sanctioned entities. China’s Commerce Ministry demanded that the EU correct its “wrongdoing” and stop harming Chinese interests. Beijing called the original EU sanctions a violation of international law. The ministry said EU actions severely damage legitimate Chinese business rights. Crypto Sanctions Highlight Growing…

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Filed under: News - @ August 14, 2025 8:24 am