13.08.2025, 15:39
China has imposed a ban on transactions with two EU banks
Source: OREANDA-NEWS
OREANDA-NEWS The Chinese Ministry of Commerce has imposed a ban on transactions with two EU banks, Lithuanian Urbo bankas and Mano bankas, for Chinese companies and individuals, the ministry said in a statement.
This decision is a response to another EU sanctions package against the Russian Federation, in which restrictions also affected two Chinese banks. Beijing regards this as a violation of international law, causing serious damage to the rights and interests of Chinese companies and having negative consequences for Sino-European economic, trade and financial relations.
"To protect our sovereignty, security and development interests, (...) China has decided to add European Urbo Bankas and AB Mano Bankas to the list of countermeasures, prohibiting organizations and individuals in China from conducting transactions (with these banks)," the report says.
Commenting on the decision of the Chinese authorities, Urbo Bankas said on Wednesday that it had contacted the Bank of Lithuania and the Ministry of Foreign Affairs. "We are asking for market surveillance and the prompt involvement of other government agencies to find out the real situation. Prior to this news, which we learned from the public space, there were no hints, no warnings or signals from official or unofficial institutions in China or other sources," said Marius Arlauskas, head of the bank's administration. He is quoted by the portal 15min.
Urbo Bankas claims that most of its clients are residents of Lithuania.
"Our bank does not carry out financial transactions in China and has no business relations with individuals or organizations of this country. Since we do not have any business partnerships with Chinese individuals and legal entities, the imposition of sanctions will have no impact on the activities of Urbo Bankas and the fulfillment of prudential requirements," Arlauskas added.
The Bank of Lithuania, in a comment to the 15min portal, stated that it would seek to find out why sanctions were imposed on these specific banks. "The Bank of Lithuania has not received any reports from the Chinese financial market supervisory authority on this issue. According to the Bank of Lithuania's preliminary assessment, this decision will not have a significant impact on the domestic financial system or the activities of the banks themselves, as the operating models of these banks are focused on the local market. The Bank of Lithuania will not comment on the political aspect of this issue, as this issue is beyond its competence," the commentary says.
According to the BNS news agency, cited by 15min, Lithuania-China relations are currently among the worst in the EU - Beijing is outraged by relations between Vilnius and Taiwan, which have been developing since 2021.
As a result, China unilaterally lowered the level of diplomatic representation from ambassador to charge d'affaires, renamed its embassy in Lithuania to the "charge d'affaires's office," and accordingly calls the Lithuanian mission in Beijing.
Lithuania still officially considers both missions to be embassies and says China's actions are contrary to international law. Lithuanian diplomats no longer work in China, as Beijing does not recognize their status.
Due to possible trade restrictions by China against Lithuania, the European Commission initiated a case against Beijing at the World Trade Organization in early 2022, but the dispute has reached an impasse.
This decision is a response to another EU sanctions package against the Russian Federation, in which restrictions also affected two Chinese banks. Beijing regards this as a violation of international law, causing serious damage to the rights and interests of Chinese companies and having negative consequences for Sino-European economic, trade and financial relations.
"To protect our sovereignty, security and development interests, (...) China has decided to add European Urbo Bankas and AB Mano Bankas to the list of countermeasures, prohibiting organizations and individuals in China from conducting transactions (with these banks)," the report says.
Commenting on the decision of the Chinese authorities, Urbo Bankas said on Wednesday that it had contacted the Bank of Lithuania and the Ministry of Foreign Affairs. "We are asking for market surveillance and the prompt involvement of other government agencies to find out the real situation. Prior to this news, which we learned from the public space, there were no hints, no warnings or signals from official or unofficial institutions in China or other sources," said Marius Arlauskas, head of the bank's administration. He is quoted by the portal 15min.
Urbo Bankas claims that most of its clients are residents of Lithuania.
"Our bank does not carry out financial transactions in China and has no business relations with individuals or organizations of this country. Since we do not have any business partnerships with Chinese individuals and legal entities, the imposition of sanctions will have no impact on the activities of Urbo Bankas and the fulfillment of prudential requirements," Arlauskas added.
The Bank of Lithuania, in a comment to the 15min portal, stated that it would seek to find out why sanctions were imposed on these specific banks. "The Bank of Lithuania has not received any reports from the Chinese financial market supervisory authority on this issue. According to the Bank of Lithuania's preliminary assessment, this decision will not have a significant impact on the domestic financial system or the activities of the banks themselves, as the operating models of these banks are focused on the local market. The Bank of Lithuania will not comment on the political aspect of this issue, as this issue is beyond its competence," the commentary says.
According to the BNS news agency, cited by 15min, Lithuania-China relations are currently among the worst in the EU - Beijing is outraged by relations between Vilnius and Taiwan, which have been developing since 2021.
As a result, China unilaterally lowered the level of diplomatic representation from ambassador to charge d'affaires, renamed its embassy in Lithuania to the "charge d'affaires's office," and accordingly calls the Lithuanian mission in Beijing.
Lithuania still officially considers both missions to be embassies and says China's actions are contrary to international law. Lithuanian diplomats no longer work in China, as Beijing does not recognize their status.
Due to possible trade restrictions by China against Lithuania, the European Commission initiated a case against Beijing at the World Trade Organization in early 2022, but the dispute has reached an impasse.
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