Last week, PM said that US tariffs would pose challenges to some Lithuanian businesses; Germany’s Rheinmetall and government officials discussed ammo plant project
President welcomes Ukraine’s mineral deal with US
President Gitanas Nausėda has welcomed a deal between Washington and Kyiv on Ukraine’s mineral resources but emphasized that both sides must be on an equal footing. “I congratulate Ukraine (…) because I saw firsthand in Kyiv how much intense political and legal work went into this. They managed to improve the agreement’s wording,” Nausėda told reporters on Thursday, the 27th of February. Kyiv hopes the deal will lead to future security guarantees from Washington, although Trump said on the 26th of February that Ukraine’s European allies should take responsibility for this. Commenting on these agreements, the president noted that the global order has already changed significantly and is becoming “far more economy-driven”.
President hopes Netherlands will deploy Patriot air defense systems again
President Gitanas Nausėda had a phone call with Dutch Prime Minister Dick Schoof on Thursday, the 27th of February, and expressed his hope that Dutch Patriot air defense systems would be deployed in Lithuania again. The Lithuanian president expressed his sincere gratitude to the Netherlands for its significant contribution to the security of the Baltic region. Nausėda and Schoof also discussed the support provided by both countries to Ukraine. Preparations for the NATO Summit in The Hague in June this year were also discussed. The Netherlands was the first country to contribute to the implementation of the rotational air defense model in Lithuania. It deployed Patriot long-range air defense systems in Lithuania in July 2024.
President sees no reason to end gas transit deal with Russia
President Gitanas Nausėda said on Thursday, the 27th of February, that he sees no reason why Amber Grid’s contract with Gazprom for gas transit through Lithuania to Russia’s Kaliningrad region should not be extended when it expires at the end of this year. According to the president, Lithuania is ready to cooperate on gas transit to the Russian exclave and to negotiate terms that would be favorable for Vilnius. The president underlined the European Union’s policy of ensuring the transit of energy resources and goods to regions that are separated from the main territories of their states. Asked whether Vilnius would consider ending the gas transit contract to pressure Russia, Prime Minister Gintautas Paluckas said on Wednesday, the 26th of February, that Vilnius had no intention of unilaterally escalating tensions with Moscow. Lithuania’s gas transmission system operator Amber Grid signed the 10-year gas transit contract with Russia’s gas giant Gazprom in late December 2015. The previous contract had been signed at the end of 1999.
Lithuanian court refuses to seize 1.6-million-worth of BKT shares
A Lithuanian court has refused to seize 1.623-million-euro worth of shares in Birių Kroviniu Terminalas (Bulk Cargo Terminal, BKT), a Klaipeda-based stevedoring company owned by Igor Udovickij, held by Belarusian fertilizer producer Belaruskali. On the 25th of February, the Vilnius Regional Court rejected a request by Belgian insurance agency Acquis to introduce interim measures and seize the BKT stake, blocking Belaruskali from transferring them to third parties or to introducing any other restrictions. Acquis told the court that its claim against Belaruskalij for legal fees is currently pending before a Belgian court. The court has already provisionally concluded that the claims in the lawsuit are backed by documentary evidence.
PM says that US tariffs will pose challenges to some Lithuanian businesses
The United States’ planned tariffs on imports from the European Union will pose challenges for some Lithuanian businesses that export to America, but the situation should not be dramatized, Prime Minister Gintautas Paluckas said on Wednesday, the 26th of February. The prime minister was commenting on Donald Trump’s announcement on Wednesday, the 26th of February, that the US would impose 25% tariffs on goods imported from the EU. The US president did not specify which goods would be affected. Lithuania exports over 1.5 billion euros’ worth of goods and services to the US annually. Paluckas noted that the Lithuanian furniture industry, which traditionally competes in the US market not only on quality but also on price, might face more challenges than others in finding alternative markets.
Lithuanian coalition agrees to move forward on taxes
Prime Minister Gintautas Paluckas said on Tuesday, the 25th of February, that the ruling coalition’s council has agreed to “move forward” on tax initiatives, without disclosing specific proposals. The prime minister says the tax debate will now be moved to a working group within the coalition, and it will work together with the Finance Ministry. In his words, planned tax changes are designed to ensure that the most vulnerable groups do not face an increased tax burden and businesses remain competitive. Among the bills proposed by the Cabinet for the parliament’s spring session are progressive personal income and real estate taxes. The prime minister did not specify which tax revenue would be used to finance defense. Lithuania is seeking to raise more additional funds to establish a national division by 2030 and be ready to host the planned German brigade. Some of the money is expected to come from economic growth and borrowing.
Funding issues may delay Lithuania’s 1st offshore wind farm project
Lithuania’s state-controlled energy group Ignitis Group has admitted that developing the country’s first 700-megawatt (MW) offshore wind farm in the Baltic Sea could face funding difficulties, meaning its planned commercial launch in 2030 may be delayed. In its 2024 annual report, the group revealed that delays in large-scale electrolysis (green hydrogen) projects in the Baltic states and across Europe have reduced “possibilities to secure long-term power offtake” agreements. “Combined with challenges in the current offshore wind supply chain environment, financing the project may become challenging as we approach FID (Final Investment Decision) in 2027,” the company said. In 2023, Ignitis Renewables, a subsidiary of Ignitis Group, together with its partner Ocean Winds, a global offshore wind farm developer, won the tender to develop Lithuania’s first offshore wind farm without state aid. Until now, it was expected that the first Lithuanian offshore wind farm would begin operations around 2030.
Blinkevičiūtė won’t seek another term as Lithuanian Social Democratic leader
MEP Vilija Blinkeviciute, leader of the ruling Lithuanian Social Democrats, said Monday, the 24th of February, she will not seek a third term as the party’s chairperson. She believes four years – one full political cycle – are a long enough period to lead a party. Blinkevičiūtė took over as leader of the Lithuanian Social Democratic Party (LSDP) in the spring of 2021 after defeating Juozas Olekas. In 2023, with no challengers, she was confirmed for a second term at the party congress. Before Blinkevičiūtė, the party was led by Gintautas Paluckas, the current prime minister, who stepped down after the party’s poor showing in the 2020 parliamentary elections. LSDP branches are now rallying behind his candidacy, and they have until the 17th of March to nominate candidates. The party’s chairperson is elected for a two-year term.
Rheinmetall, government officials discuss planned ammo plant project in Lithuania
Representatives of German defense giant Rheinmetall visited Lithuania on Monday, the 24th of February, and Tuesday, the 25th of February, and discussed the progress of the 155 mm artillery ammunition plant to be built in Baisogala, Radviliškis District, with representatives of the Ministries of the Economy and Innovation and Energy. According to Karolis Vaitkevičius, spokesman for the Economy Ministry, the meetings focused on the project’s timetable, deadlines, conditions and other details. On Tuesday, the 25th of February, Economy Minister Lukas Savickas met with the head of Rheinmetall Defense Lietuva, a joint company set up for the project. Rheinmetall and two Lithuanian state-owned companies – Epso-G Invest, part of Lithuania’s state-owned energy group Epso-G, and Giraitės Ginkluotes Gamykla (Giraitė Armament Plant, GGG) – will start this year the implementation of the project in Baisogala, valued at 260-300 million euros. Under the agreement signed last December, Rheinmetall will own 51% of Rheinmetall Defense Lietuva, Epso-G Invest will have a stake of 48% and the GGG will own 1%.