The Court of Justice of the European Union reports the decision was made to maintain in force the verdict with which Lithuanian state railway company Lietuvos geležinkeliai was fined EUR 20.069 million for demolishing Mažeiķi–Reņģe railway section.
Complying with the decision of the European Commission (EC), Lithuania did restore the railway section. In February 2020 railway traffic restarted there.
In October 2017 EC fined Lietuvos geležinkeliai EUR 27.873 million for demolishing Mažeikiai-Reņģe railway section. The railway company paid the fine the next year, but EC then appealed the decision in the Court of Justice of the European Union, which rejected the plea. The fine, however, was reduced by EUR 7.8 million – to EUR 20.069 million.
Lithuanian state railway company turned to the court of justice in January 2021, requesting the fine to be annulled. The court of justice has since admitted that EC’s performed analysis was comprehensive and provides sufficient evidence of the demolition of the railway infrastructure having potential anti-corruption consequences. Previously the EU Court of Law noted that by demolishing the aforementioned railway section, Lietuvos geležinkeliai had abused its dominant position in Lithuania’s freight transport market.
Mažeikiai-Reņģe railway section was unexpectedly shut down in 2008
due to the conflict between Lietuvos geležinkeliai and oil processing company Orlen Lithuania. The official reason was the poor state of the railway and the need for immediate repairs. Later on one railway section was demolished. The oil processing company was then forced to use a longer and more expensive route to the Freeport of Riga.
Following the request from Latvia and Orlen Lithuania EC commenced an investigation in 2013 to determine if such an act from Lietuvos geležinkeliai had any impact on competition in the Lithuanian and Latvian railway freight market and whether it was a breach of EU monopoly monitoring rules, which prohibit abuse of dominant market position.
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