Week in Lithuania | hospitality and restaurant workers protest against high VAT in Vilnius; court upholds detention of Foxpay probe suspect

Last week, Lithuania announced it will provide one-off 176-euro payments to newly-arrived Ukrainians; HU-LCD deputy chairman named interim leader

Symbolic clock in Vilnius begins countdown to Baltics’ exit from BRELL

A symbolic clock in Vilnius began on Thursday, the 31st of October, counting down the last 100 days until the Baltic power grids’ exit from the joint electricity system agreement with Russia and Belarus (BRELL) and synchronisation with the continental European network next February. Prime Minister Ingrida Šimonytė said at the clock unveiling event: “This is a great day and a great result.” Lithuania, Latvia and Estonia, alongside Russia and Belarus, are still operating within the IPS/UPS system where electricity frequency is centrally regulated in Russia. The Baltic power grids are scheduled to start operating synchronously with the continental Europe system on the 9th of February 2025.

Hospitality and restaurant workers stage protest over high VAT

Around 200 representatives of the hospitality sector staged a protest outside the government office in central Vilnius on Thursday, the 31st of October, to protest against the VAT increase from 9% to 21% that came into effect at the beginning of this year. Evalda Šiškauskienė, president of the Association of Hotels and Restaurants in Lithuania, the organizer of the protest in Lithuania, said that “restaurants are now closing one after the other, and we already had 50 bankruptcies in the first half of this year, and there are many more bankruptcies registered.” The profitability of restaurants is now 0.17%, according to the latest statistics. According to the State Data Agency, the turnover of restaurants, cafes and other catering companies in Lithuania amounted to 1.056 billion euros, excluding VAT, in the first eight months of the year, an annual drop of 7.3%.

Liberal leader calls LSDP leader’s move ‘unacceptable political manoeuvring’

Viktorija Čmilytė-Nielsen, leader of the Liberal Movement, said on Wednesday, the 30th of October, that Vilija Blinkevičiūtė’s decision not to take responsibility for leading the next government did not surprise her and described it as “unacceptable political manoeuvring”. Doubts about whether Blinkevičiūtė would become the next prime minister if her party won the election lingered throughout the campaign. Initially, the LSDP leader refused to give a straight answer to the question of whether she would take up the role, but in late August, she confirmed her intention to serve as prime minister. Blinkevičiūtė announced after Wednesday’s meeting of the LSDP presidium that she could not take up the post of prime minister because of her age. 

Lithuanian Railways to raise freight transport rates by 6-20%

LTG Cargo, the freight transportation arm of state-owned Lietuvos Geležinkeliai (Lithuanian Railways, LTG), announced on Wednesday, the 30th of October, an increase of the basic rates for some of its services by 6-20% starting next year. These changes are expected to affect about one-fifth of the freight flow, including goods transported in transit through Lithuania to Russia’s Kaliningrad exclave, the company said. The rates for import and export freight through the Port of Klaipeda will remain unchanged. Those for rolling stock propulsion services have also stayed the same since 2023. These changes to the basic rates will affect 21% of freight volumes transported on the railway network. For customers with long-term agreements, the prices and terms specified in their contracts will continue to apply. Freight rates to and from non-EU countries will increase by 6%.

Court upholds detention of Foxpay probe suspect

Vilhelmas Germanas, a suspect in a large-scale investigation centring on the financial technology company Foxpay, remains in custody for two months after the Vilnius Regional Court on Wednesday, the 30th of October, dismissed his appeal against the measure of restraint. In his appeal, Germanas requested that his detention be replaced by bail and intensive supervision. On the 17th of October, the Vilnius City District Court ordered that Germanas be remanded in custody for two months, stating that the suspect poses a flight risk and may obstruct the pre-trial investigation or commit new offenses. The man was arrested on suspicion of fraud, bribery and money laundering. Law enforcement bodies announced in mid-October that the Foxpay-linked pre-trial investigation involved both property crimes and corruption. According to the Financial Crime Investigation Service (FCIS), more than 17 million euros may have been laundered and bribes amounting to 100 000 euros may have been paid. Seven suspects were detained in mid-October as part of the investigation, including Foxpay owner Ieva Trinkūnaitė, her partner Germanas, and Mindaugas Navickas, the husband of former Social Security and Labor Minister Monika Navickienė.

Lithuania to stiffen residence permit application rules

Starting in December, Lithuania is set to tighten the rules for applying for residence permits, limiting applications through an external service provider to citizens of the country where the provider’s office operates, the Interior Ministry said on Tuesday, the 29th of October. Citizens of countries without an external service provider’s office will still be able to submit temporary residence permit applications through providers in other countries if they plan to come to Lithuania for family reunification, highly skilled work, or studies in approved programs, including doctoral programs. Application rules remain unchanged for citizens of India, Australia, Japan, the United Kingdom, the United States, Canada, New Zealand, and South Korea.

Lithuania to provide one-off 176-euro payments to newly arrived Ukrainians

The International Organization for Migration’s office in Vilnius (IOM Lithuania) will provide one-off payments of 176 euros to newly arrived war refugees from Ukraine, the organization said Tuesday, the 29th of October. The number of new arrivals dropped, yet, every week, IOM receives “dozens of Ukrainians”, Eitvydas Bingelis, head of IOM Lithuania, said in a statement. The assistance will be granted to Ukrainian or third-country nationals who have arrived in Lithuania from Ukraine for the first time and have crossed an external EU border within the past 40 calendar days. The payment will be made to single parents or carers arriving with one or more children up to the age of 18, families with three or more children up to the age of 18, families with a disabled child up to the age of 18 (both children and adults), pregnant women, persons aged 60 and over, and persons with disabilities. Almost 91 000 Ukrainians have arrived in Lithuania since the start of the war.

Lithuania issues defence bonds worth nine million euros

Citizens, businesses and other organizations in Lithuania have bought nine million euros worth of the first issue defence bonds since the 10th of October, the Finance Ministry said on Monday, the 28th of October. Between the 10th and 28th of October, 1 346 contracts were concluded, and 99% of them were signed by natural persons. The bonds will pay an interest rate of 2% per annum. The funds raised will be used for the purchase of major armaments.

HU-LCD deputy chairman named interim leader

Radvilė Morkūnaitė-Mikulėnienė, the deputy chairman of the Homeland Union-Lithuanian Christian Democrats’ (TS-LKD), has been named the party’s interim leader. The party’s new chair will be elected in January. Gabrielius Landsbergis stepped down as the party’s chair following the unsatisfactory TS-LKD election results.

LSDP set to continue coalition talks with Democrats, LFGU

Vilija Blinkevičiūtė, chairwoman of the Lithuanian Social Democratic Party (LSDP), met with Saulius Skvernelis, leader of the Democratic Union “For Lithuania”, and Ramūnas Karbauskis, chairman of the Lithuanian Farmers and Greens Union (LFGU), in wee hours of Monday, the 28th of October, preparing for negotiations on joint work in the ruling coalition. Skvernelis called the Social Democrats a solid and reliable partner. The Social Democrats will have 52 seats in the future Seimas, the Democrats – 14, and the LFGU – 8.