Developing | China bans agencies and individuals from dealing with 2 EU banks

China decided on Wednesday to sanction two European banks as a countermeasure against previous financial sanctions from the 27-member bloc.

The Ministry of Commerce will ban Chinese agencies and individuals from doing business with UAB Urbo Bankas and AB Mano Bankas, according to its online statement.

The two banks are both from Lithuania, a country that has been one of Beijing’s most vociferous critics in Europe and was previously targeted by economic sanctions from Beijing after seeking to build close ties with Taiwan.

The measure, taking effect immediately, will prohibit Chinese entities and individuals from engaging in any transactions, cooperation, or other activities with the two banks, the ministry said.

Last month, in its latest package of measures designed to hobble Russia’s war machine, the EU announced sanctions on two small Chinese banks from cities close to China’s border with Russia: Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank. Those measures went into effect on August 9.

The Chinese banks have been accused of facilitating the exchange of digital assets that are “significantly frustrating” EU sanctions. Beijing responded by calling on the bloc to “immediately cease its wrong practice”.