Lithuania not discussing resumption of Belaruskali fertilizer transit - PM

VILNIUS - Prime Minister Gintautas Paluckas said on Friday that Lithuania is not currently holding any discussions on resuming the transit of fertilizers produced by Belarus' potash giant Belaruskali through the country.

He made the remarks after BNS reported that by Biriu Kroviniu Terminalas (BKT), a Klaipeda bulk cargo terminal controlled by Igor Udovickij, had proposed a settlement with the government that would allow Belarusian fertilizer shipments to resume via Lithuania.

The European Union's General Court is currently hearing BKT's lawsuit against the EU Council, whose regulation led Lithuania to end Belaruskali's transit through the seaport of Klaipeda.

"For now, Lithuania's position remains unchanged, and we're not planning any steps regarding arbitration or other legal disputes," Paluckas told reporters. "At this stage, there are no serious or detailed discussions taking place."

"We're aware that a letter has been submitted to the government's office, which is gathering information and coordinating with the Foreign Ministry, which is responsible for enforcing and overseeing sanctions, and the Transport Ministry, which applies them directly through Lietuvos Gelezinkeliai (Lithuanian Railways, LTG)," he added.

As reported by BNS earlier on Friday, BKT CEO Ruslan Malinin wrote to Paluckas and the government in June, offering to withdraw the company's lawsuit from the EU General Court in exchange for permission to resume Belaruskali fertilizer transit via Lithuania and BKT's terminal.

Transport Minister Eugenijus Sabutis told BNS on Friday that he was not aware of such a proposal and said that no discussions on the matter are currently underway.

On May 19, the General Court dismissed part of BKT's lawsuit that challenged restrictive measures imposed by the European Commission, which led to the Lithuanian government's decision in February 2022 to terminate Belaruskali's transit through Klaipeda.

However, the court is still reviewing the part of the lawsuit contesting the EU Council's regulations and its inaction. The Commission's measures were based on the Council's regulation.

Last December, Belaruskali filed a separate claim with an arbitration tribunal seeking 12.09 billion US dollars in damages from Lithuania.

The arbitration case stems from the government's January 2022 decision to invalidate the freight contract between Belaruskali and LTG. As a result, the long-standing transport of Belarusian potash through Lithuania was halted on February 1, 2022.

Until then, BKT had been handling around 11 million tons of Belaruskali fertilizer annually. The terminal's full annual capacity is 16 million tons, a level the company had aimed to reach.

In 2021, before the transit ban and sanctions, BKT posted 16.1 million euros in profit and 96.1 million euros in revenue.

Udovickij directly and indirectly owns 70 percent of BKT, while Belaruskali holds the remaining 30 percent. The Belarusian company cannot exercise its voting rights due to international sanctions.