China bans 2 major European banks from operating in the country
Photo: China has banned two European banks from operating in the country (facebook.com/Urbobankas)
China has imposed economic restrictions on Lithuanian banks UAB Urbo Bankas and AB Mano Bankas, prohibiting them from conducting any business in the country, according to the Chinese Ministry of Commerce.
The ministry says in a statement that China had decided to add two European Union banks, UAB Urbo Bankas and AB Mano Bankas, to the list of countermeasures, prohibiting legal entities and individuals in China from conducting relevant transactions and cooperating with them
China hopes that this step will encourage European countries to cherish long-term relations with China and stop misguided practices in the international arena.
The expansion of the list of restrictions against European companies was carried out following China's law on the prohibition of foreign sanctions.
Background
On July 18, the European Union introduced a new package of sanctions against Russia. Among other things, it provides for a new price cap on Russian oil. The package also covers a number of new financial and trade measures.
In its 18th package of sanctions against Russia, the European Union included Chinese banks for the first time. Among other foreign companies that helped the Kremlin, two financial institutions from China were blacklisted.
Two Chinese regional banks, Suifenhe Rural Commercial and Heihe Rural Commercial, have been sanctioned. Both banks are located near the border between China and Russia.
At the same time, China actively lobbied for the exclusion of banks from the sanctions package, threatening to retaliate and directly demanding that the EU not impose sanctions on Chinese financial institutions.
