Week in Lithuania: Seimas fall session to start with no-confidence vote; faster power grid synchronization approved

In Lithuania, the Speaker of the Seimas has turned to the Ethics Commission in connection with the MP’s statements about Jews, while the Lithuanian court has decided that Let’s Jet must repay about five million euros to the Nigerian company.
NCMC sees no need for a nationwide extreme situation
Lithuania’s National Crisis Management Center (NCMC) has decided not to propose declaring a state-level nationwide extreme situation over drought, at least for now, its head said on the 16th of June, noting that the legal regime has already been put in place in ten municipalities. The ten municipalities that have already declared an extreme situation due to drought are the districts of Klaipėda, Kretinga, Vilkaviškis, Rokiškis, Plungė, Šilutė, Pakruojis, Šakiai, Telšiai, and Mažeikiai.
Lithuania allots 10 million euro to the EIB Ukraine reconstruction fund
 Lithuania has allocated 10 million euros to a new European Investment Bank trust fund that will finance the reconstruction of Ukraine’s key infrastructure in the near future, Lithuanian Deputy Finance Minister Mindaugas Liutvinskas said at the EIB’s annual Board of Governors meeting on Friday, the 16th of June, the Finance Ministry said. The Lithuanian government supports the EIB’s efforts to continue supporting Ukraine, Liutvinskas said, adding that the new fund allows the EIB to continue implementing urgent infrastructure projects in the war-torn country.
Seimas fall session to start with the government no-confidence vote
The Lithuanian parliament Seimas’ fall session will begin with a vote of no confidence in the government, Ramūnas Karbauskis, leader of the opposition Lithuanian Farmers and Greens Union, said on Friday, the 16th of June. He admits, however, there will be a lack of votes to sack the government. Karbauskis reminded that his party a motion of no confidence in the government in the middle of May but it failed to receive backing from other opposition representatives. Now, in his words, the Democrats “For Lithuania” are also talking about this procedure. According to the Law on the Government, at least one-fifth of the Seimas (29 members) may submit an interpellation for the prime minister or a minister during a Seimas session, and also submit as well as a draft resolution of no-confidence in the government. If the Seimas decides it is not satisfied with the prime minister and ministers’ answers, a secret ballot would be held and, if more than 71 MPs vote in favour during a vote of no-confidence, the government would have to go.
Seimas endorses faster power grid synchronization in 2024
The Lithuanian parliament, the Seimas, on Thursday, the 15th of June, gave the greenlight for implementing the project for synchronizing the country’s electricity grid with the Continental European system in the first half of 2024, about a year and a half earlier than planned. The respective amendments to the Law on the Connection of the Electricity System to the Continental European Grid for Synchronous Operation passed with 128 votes in favour, with no votes against or abstentions.  However, without Latvia and Estonia, which say they are not yet ready, the project cannot be completed ahead of the agreed target date of late 2025.
Seimas speaker turns to ethics watchdog over MP’s Jewish remarks
Speaker of the Lithuanian Parliament Seimas Viktorija Čmilytė-Nielsen turned on Thursday, the 15th of June, to the parliamentary Commission for Ethics and Procedures over MP Remigijus Žemaitaitis ‘ recent remarks about Jews. Žemaitaitis posted several anti-Semitic remarks on his Facebook page earlier this week, expressing his anger over Prime Minister Ingrida Šimonytė’s visit to Israel and accusing Jews of deporting and killing Lithuanians. The Prosecutor General’s Office has also launched a pre-trial investigation into his statements. Čmilytė-Nielsen says the MP’s rhetoric is divisive and incites hatred in society. The board of the Lithuanian Freedom and Justice Party suspended Žemaitaitis’ membership of the party in May over his anti-Semitic remark about the demolition of a Palestinian school.
KN to invest 300 million by 2030
Klaipėdos Nafta (Klaipeda Oil, KN), Lithuania’s operator of oil and LNG terminals, announced on Wednesday, the 14th of June, it plans to invest 300 million euros by 2030, according to its long-term corporate strategy for 2023-2050.  Over 45 percent of capital investments will be dedicated to building new infrastructure and competencies for the handling and storage of new energies, as well as to enhancing sustainability and reducing emissions across all of KN activities, the company announced via the Nasdaq Vilnius Stock Exchange Wednesday, the 14th of June. Starting in 2026, KN aims to pay annual dividends of at least 5 million euros, targeting a dividend yield of approximately 5 percent. The total dividend payments are expected to reach at least 240 million euros for the period of 2031-2050.
Lithuanian MPs set salaries for local government politicians
Lithuania’s parliament, the Seimas, on Tuesday, the 13th of June, set salaries for local government politicians to replace the existing allowances for office needs that have recently sparked a misuse scandal. In all, 116 MPs voted in favour of the changes, two were against and nine abstained. Once signed by President Gitanas Nausėda, the changes will come into force in July. Under the bill, local councilors will get a fifth of the mayor’s salary in their specific municipality. Also, the new law scraps the existing provision that a councilor may get an allowance to cover office, postal, telephone, internet, transport, and office lease expenses and also to pay for services provided by public information providers and cover other expenses related to their official councilor activities. The debate on councilors’ use of money allocated for office needs has recently sparked a scandal in Lithuania after it turned out that some local politicians had used the maximum possible amounts, despite the fact that movement and other activities were severely restricted during the coronavirus pandemic. The then Education Minister Jurgita Šiugždinienė, a former Kaunas councilor, had to do some explaining because of this situation and was eventually forced to resign.
Lithuania to host ISU European Figure Skating Championships in 2024
The International Skating Union on Monday, the 12th of June, officially announced that Lithuania will host the ISU European Figure Skating Championships in 2024. The initial plan was to hold the championship in Budapest. However, in early May, Hungary renounced this right, citing “its impact on the economy and energy prices having a significant impact on figure skating.”
After IMF conclusions, Lithuania expects to table a tax reform package by July
Lithuanian Finance Minister Gintarė Skaistė said on Monday, the 12th of June, she expects to table a package of tax legislation to the Seimas by the end of the current parliamentary session after a two-week IMF mission gave a positive opinion of the proposed tax reform. The IMF team “also expressed support for the direction that the tax package sets,” the minister told reporters on Monday. “This means that the International Monetary Fund believes that this package is in line with long-standing recommendations and is on the right track.”  Borja Gracia, the IMF mission chief for Lithuania, on Monday, the 12th of June, welcomed the government’s proposed tax reform as moving away from over-taxation of labour toward higher taxes on capital, property, and the environment.
Court orders Let’s Jet to repay around 5 million euro to Nigeria’s Hak Air
A Lithuanian court ordered Let’s Jet (formerly AviaAM B01), an Estonian-owned Lithuanian aircraft leasing company, to return an advance payment of around 5.2 million US dollars (around 4.8 million euros at today’s rate) to Nigerian airline Hak Air for an aircraft it planned to buy a decade ago. On the 8th of June, the Court of Appeal of Lithuania rejected the Lithuanian company’s request to reopen the proceedings with new evidence, including Hak Air’s financial statements for 2012-2018, which allegedly showed that the Nigerian company did not intend to buy the plane and was only trying to compete unfairly by making the advance payment. “The financial statements are not material evidence in this case as allegedly proving the applicant’s dishonesty or lack of a realistic opportunity to purchase the aircraft, i.e., had they been provided during the proceedings, the decision would not have been different, therefore, there is no reason to reopen the proceedings,” the court ruled.