BRUSSELS — The European Union has urged Beijing to withdraw what it called “unjustified” sanctions on two Lithuanian banks, denouncing the move as retaliation for EU penalties on Chinese lenders accused of aiding Russia’s war effort in Ukraine, reported by Euro News.
China’s measures, announced this week against Urbo Bank and Mano Bank, are largely symbolic — neither operates in China — yet they signal the growing rift between Brussels and Beijing over the war and China’s broader geopolitical posture.
European Commission spokesperson Olof Gill defended the EU’s sanctions, saying they were vital to “minimise the effectiveness of the Russian war machine.” He dismissed China’s countermeasures as lacking “any justification or evidence” and demanded their removal.
The EU’s latest Russia sanctions package, effective August 9, targeted Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank, accusing them of providing crypto services to help Moscow evade restrictions. In response, Beijing accused the bloc of harming China–EU economic and financial ties.
Lithuanian authorities downplayed the impact. The Bank of Lithuania said the sanctions would have “no significant impact” given the banks’ domestic focus. Urbo Bank’s administration chief Marius Arlauskas echoed that assessment, noting no Chinese business links.
The dispute comes against a backdrop of simmering tensions between China and Lithuania since 2021, when Vilnius allowed Taiwan to open a representative office under its own name — a move that prompted Beijing to expel Lithuania’s ambassador. Relations further soured in 2024 after Lithuania expelled Chinese diplomats over a maritime security investigation.
