Lithuania terminates contract for transportation of Belarusian potash | News from Germany about Europe

Lithuania terminates the contract for the transportation of Belarusian potash by Lithuanian railways. The relevant contract with the fertilizer company Belaruskali will expire on February 1, Lithuanian Transport Minister Marius Skuodis said at a government meeting in Vilnius on Wednesday, January 12.

At the meeting, the Lithuanian cabinet confirmed the conclusion of the commission to study the transactions of strategic companies that the agreement between the Lithuanian Railways (LD) and Belaruskali contradicts the interests of Lithuanian national security and is subject to termination.

Contract for the transportation of Belarusian potash

Lithuanian Railways signed an agreement with Belaruskali in the spring of 2018 and expires at the end of 2023. Under the terms of the agreement, up to 11 million tons of Belarusian fertilizers are transported annually through Lithuania and the port in Klaipeda.

The railway transit of potash fertilizers through Lithuania continues to this day, despite the sanctions imposed by the United States against Belaruskali from 8 December. This is due to the fact that even before the sanctions came into force, Belarus transferred to the Latvian Railway an advance payment for several months in advance.

The transit situation caused a scandal in the Lithuanian government – Foreign Minister Gabriel Landsbergis and Minister of Transport Skuodis announced their readiness to resign. Lithuanian Prime Minister Ingrida Simonyte promised to find a solution with minimal damage to the country. A representative of the Latvian Railways said that the company is looking for ways to return the advance paid by Belaruskali. According to the Lithuanian media, it is about 10 million euros.

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