China Hits Back: Sanctions on Lithuanian Banks

China imposed sanctions on two Lithuanian banks in response to the EU's measures against Chinese institutions over support for Russia. The targeted banks are barred from Chinese financial activities, reflecting escalating tensions. This action impacts China-EU trade and financial cooperation, highlighting geopolitical complexities in global sanctions policy.

In a move that underscores the growing geopolitical tensions, China has imposed sanctions on two Lithuanian banks. This action comes as a direct response to the European Union's decision to include two Chinese financial institutions in its recent sanctions against Russia.

The targeted banks, Lithuania's UAB Urbo Bankas and Mano Bankas AB, are now prohibited from engaging in any financial cooperation with entities in China. This was confirmed in a statement released by China's Ministry of Commerce on Wednesday.

The EU's new sanctions, aimed at companies and individuals allegedly supporting Russia's military endeavors, took effect on August 9. Despite China's disapproval, the EU maintained its stance, impacting China-EU economic and trade relations, which could have wider implications for global financial markets.

(With inputs from agencies.)