The European Union has imposed sanctions on two Chinese banks for the first time, escalating pressure on foreign institutions accused of aiding Russia’s ongoing military aggression in Ukraine. The measures are part of the EU’s 18th sanctions package against Moscow, described by EU officials as the most comprehensive to date.
The sanctions target two regional Chinese institutions — Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank — both located near the Russian border. According to the European Council, the banks were facilitating transactions and financial services that helped Russia bypass existing restrictions imposed since its full-scale invasion of Ukraine began in 2022.
Brussels accuses the two banks of directly enabling procurement of military components and sensitive technologies in violation of EU regulations.
This marks the first time Chinese financial institutions have been directly penalized by the EU for their role in supporting Russia’s war economy.
In addition to the bank sanctions, the EU announced a new round of measures that include:
Lowering the Russian oil price cap from $60 to approximately $47.60 per barrel, with a mechanism for future adjustments.
Blacklisting 105 oil tankers allegedly used in Russia’s “shadow fleet” to circumvent sanctions on crude exports.
Banning transactions with 22 additional Russian banks.
Expanding restrictions on dual-use technologies, military components, and companies involved in weapons production or logistics.
China has strongly condemned the move. Foreign Ministry officials in Beijing issued a statement warning of “countermeasures” and accused the EU of interfering in bilateral trade.
Meanwhile, the Kremlin dismissed the new restrictions. Russian presidential spokesman Dmitry Peskov said the country had “built immunity” to Western sanctions and would not change course.
Ukrainian President Volodymyr Zelensky welcomed the move, calling it “an essential step toward cutting off the arteries feeding Russia’s war machine.”
The sanctions package was temporarily delayed by a veto from Slovakia, which was lifted after securing exemptions related to national energy security.
