Last week, the VSD boss vowed to uncover Russian sanction circumvention schemes; finance vice-minister resigned amid pro-Russia allegations
WTO re-suspends case against China’s trade restrictions on Lithuania
Following a request from the European Commission, the World Trade Organization (WTO) has suspended the case over China’s alleged trade restrictions on Lithuania for the second time, the WTO said in a statement on Thursday, the 30th of January. The case was suspended as of the 27th of January. Bloomberg first reported the news. The case was re-suspended because the Commission’s lawyers continue to find it difficult to prove that China imposed restrictions on Lithuanian goods. As with the first suspension, the case may be halted for a year, and if not renewed, the proceedings would be terminated. Following the opening of the Taiwanese Representative Office in the Lithuanian capital as part of Vilnius’ efforts to deepen ties with Taiwan, China in 2021 downgraded diplomatic relations with Lithuania and, according to Vilnius, imposed trade restrictions.
President sees no prospect for ruling coalition with Žemaitaitis
President Gitanas Nausėda on Thursday, the 30th of January, expressed doubts about the prospect of the existing ruling coalition, including the Neman Dawn party, chaired by Remigijus Žemaitaitis. His comment came amid the ongoing exchange of words between Žemaitaitis and Speaker of the Seimas Saulius Skvernelis, leader of the Democrats “For Lithuania”, another ruling bloc partner. Their latest clash was over Lithuania’s plans to increase defense spending. According to Skvernelis, Žemaitaitis is spreading disinformation during his meetings with voters, talking about the planned sources of defense funding and criticizing the president. Skvernelis believes that such statements are not in line with the coalition agreement and is waiting for the major coalition partner, the Lithuanian Social Democratic Party, to convene a coalition council meeting.
Lithuania sends short-range air defense systems to Ukraine
Lithuania has sent short-range man-portable air defense systems with missiles to Ukraine, the Defense Ministry said on Thursday, the 30th of January. The systems, intended for Ukraine’s armed forces, were delivered to the country at the end of last week, it said. The ministry said that this year’s military assistance to Ukraine will focus on air defense, ammunition, drones and drone jamming equipment, with the aid also contributing to the development of Lithuania’s defense industry. Lithuania also plans to support Ukraine’s defense industry by funding domestic weapon production. Since Russia launched its full-scale invasion in February 2022, Lithuania has provided over 767 million euros in military aid to Ukraine.
Ukraine’s Kormotech to build a 60-million-euro plant in Lithuania
Kormotech, a Ukrainian pet food maker, will expand its production in Lithuania’s Kėdainiai Free Economic Zone as it is set to start building a new 60-million-euro production facility in early February and plans to create around 200 new jobs, the company said on Thursday, the 30th of January. With the construction of a 19 500-square-meter administrative, storage and production building, the company will triple its production of wet dog and cat food from 22,000 to 60,000 tons per year. Founded in 2003 in Lviv, Kormotech launched its first pet food production facility in the Kėdainiai FEZ in 2020, employing 175 people.
EBRD lends 18-million-euro for the development of Eika’s business center
The European Bank for Reconstruction and Development (EBRD) is lending 18 million euros for the development of Eika Group’s Jasinskio 2 business center in Vilnius, a project valued at over 30 million euros, the company said on Wednesday, the 29th of January. The EBRD will finance 60 percent of the project’s costs. This will mark the first cooperation project between Eika Group and the EBRD. Vlaho Kojakovič, EBRD director for property and tourism, said that Jasinskio 2 is in line with the bank’s real estate strategy for 2025-2029, which prioritizes sustainable construction, innovation, and urban regeneration.
Lithuania set to follow common EU position on Greenland
Lithuania does not choose sides but will stick to a common EU position on Greenland, Remigijus Motuzas, chair of the Seimas Committee on Foreign Affairs, said on Wednesday, the 29th of January, as US President Donald Trump threatens to take control of the autonomous Danish territory. The situation is quite sensitive and complicated, Motuzas said, because both the US and Denmark are very important partners for Lithuania. Speaking earlier in the day, Foreign Minister Kestutis Budrys said Lithuania also cannot take sides under Article 1 of the NATO Treaty, which states that the Allies undertake to settle any international disputes by peaceful means.
Lithuania temporarily halts second offshore wind farm tender
The government on Tuesday, the 28th of January, approved a temporary suspension of Lithuania’s ongoing second offshore wind farm developer tender in the Baltic Sea to review its conditions and ensure that the future wind farm has minimal impact on electricity prices. Energy Minister Žygimantas Vaičiūnas said last week that if the parliament approves changes to the terms for the second 700-megawatt offshore wind farm tender, the auction could be rescheduled for April, with the winning bidder to be announced by the end of the year. According to the minister, the review of the tender conditions would aim to strike a balance between the project’s attractiveness to potential developers and the benefits for consumers, as well as to reduce state incentives. The minister has stated repeatedly that, given market changes and the higher cost of offshore wind power compared to onshore generation, the second offshore wind farm should not be developed at a price that would become “a burden on consumers”.
VSD chief vows to uncover Russian sanction circumvention schemes
Lithuania’s intelligence service will uncover schemes to circumvent the existing sanctions against Russia in Lithuania and those involved in such schemes would face punishment and “great shame”, Darius Jauniškis, head of the State Security Department (VSD) said on Tuesday, the 28th of January. In his words, ways to circumvent sanctions are becoming increasingly sophisticated as the restrictions on Russia are working since Russia desperately needs Western technology. Lithuanian companies, he said, are sometimes involved in sanction circumvention, but he did not provide more detail due to ongoing investigations.
Suspected Russian spy pretends to be blind
Eduard Manovas, a Lithuanian resident accused of spying for Russia, is pretending to be blind and having other health problems, Darius Jauniškis, director of Lithuania’s State Security Department (VSD), said on Tuesday, the 28th of January. Manovas and his lawyer have used his health problems as a basis for asking the court to grant him a less restrictive remand measure than detention. Jauniškis says Manovas’ pretence makes him smile. Manovas’ request for a lighter remand measure was eventually rejected, and the Siauliai Regional Court started hearing his cases on Monday. It will be heard behind closed doors. The VSD boss refrained to comment on whether Russia has contacted Lithuanian officials about the possibility of exchanging Manovas for any Lithuanian or Western citizens imprisoned in Russia. The man was arrested in January 2024 and he was found in possession of spying equipment.
Finance vice-minister resigns amid pro-Russia criticism
Deputy Finance Minister Valentin Gavrilov, under fire for alleged pro-Russian views, announced on Tuesday, the 28th of January, that he is stepping down. “Endless discussions and doubts about my ability to perform my duties are not helping the efficient work of the entire ministry. Therefore, I have decided to resign as deputy finance minister,” he posted on Facebook. Gavrilov first faced criticism earlier in January when the media highlighted his Facebook posts in which he shared images from the 9th of May Victory Day commemoration in Vilnius and supported calls to stop the blockade of the Astravyets nuclear power plant in Belarus and not to increase military funding. LRT has reported that he had an account on the Russian social platform VKontakte, where he shared a playlist glorifying the Soviet Union.
Lithuania reports its first bird flu case of this year
Lithuania has confirmed its first case of bird flu this year in wild animals, the State Food and Veterinary Service (SFVS) said on Monday, the 27th of January. The virus was detected last Friday in a dead wild swan found in the southern district of Alytus. According to SFVS Deputy Director Paulius Busauskas, the mild winter and warming temperatures increase the risk of the disease spreading more rapidly.
IMF mission starts work in Vilnius
Experts from the International Monetary Fund (IMF) began work in Vilnius on Monday, the 27th of January, to assess Lithuania’s economic situation and prospects. The IMF team met with MPs, officials from the government, the president’s office, the Central Bank of Lithuania, the National Audit Office, and other state institutions, as well as representatives from social partners and the private sector. The mission ended on Friday, the 31st of January.