tl;dr
China sanctioned two Lithuanian banks, UAB Urbo Bankas and AB Mano Bankas, banning them from conducting business in China starting August 13, 2025. This retaliatory move follows EU sanctions against Chinese financial institutions for providing cryptocurrency services to Russia. The Lithuanian banks ...
China sanctioned two Lithuanian banks on Wednesday in retaliation for EU sanctions targeting Chinese lenders involved in cryptocurrency services to Russia. The Chinese Ministry of Commerce banned UAB Urbo Bankas and AB Mano Bankas from conducting business in China as of August 13, 2025. Chinese organizations and individuals are prohibited from transacting or cooperating with these banks.
The sanctions come after the EU imposed measures on two Chinese financial institutions on July 18, citing their provision of cryptocurrency services that undermined sanctions against Russia. Both sanctioned Lithuanian banks reportedly have limited or no significant business dealings with China, suggesting China selected symbolic targets rather than aiming to inflict substantial economic harm.
This move also echoes ongoing diplomatic tensions between China and Lithuania, which escalated after Lithuania allowed a Taiwanese representative office in Vilnius and expelled several Chinese embassy staff last year. Beijing views Taiwan as part of its territory and opposes international recognition efforts. The banking sanctions are part of a broader Chinese economic pressure campaign against Lithuania.
The European Commission announced plans to evaluate China’s measures before determining further action, while EU officials expressed openness to finding mutually acceptable solutions. Meanwhile, China accused the EU of violating international law and severely damaging legitimate Chinese business rights through its sanctions.
The targeting of cryptocurrency services reflects a growing trend of financial sanctions as powerful tools in geopolitical conflicts. Governments increasingly view crypto platforms as potential channels for evading sanctions, prompting heightened restrictions on financial institutions across jurisdictions. This tit-for-tat escalation in financial warfare suggests the use of economic measures will continue expanding globally.