AsianFin -- The European Union has imposed sanctions on two small Chinese banks as part of its latest effort to curb Russia’s ability to sustain its war in Ukraine, defying warnings from Beijing of potential retaliation.

Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank — both regional lenders located in cities near China’s northeastern border with Russia — were added to the EU’s sanctions blacklist under the bloc’s 18th package of measures, diplomatic sources confirmed on Friday.