The Ukrainian owners of the Lithuanian-based producer of air defence systems LiTak-Tak have complained about government sanctions, threatening to turn to international arbitration.
LiTak-Tak, which is indirectly owned by Valeriy Boguslavskiy and Sergiy Perevarov, saw its operations ground to a complete halt last October after the Lithuanian government said the company did not meet national security interests, quoting a special governmental commission vetting strategic deals.
LiTak-Tak estimates that it lost over 140 million euros of investments and revenue due to the government's decision.
At the company's request, Vilnius Regional Administrative Court ruled the decision unlawful. However, the government has appealed the judgment.
If no deal between the investors and the government is reached within six months, LiTak-Tak's shareholders intend to turn to the Washington-based International Centre for Settlement of Investment Disputes (ICSID) or other arbitration tribunal working under the UNCITRAL rules.
LiTak-Tak has received offers, worth more than 26 million euros, from NATO and EU countries on the purchase or upgrade of advanced radar systems, the company said, but it cannot fulfill the orders.
The company currently has 15.8 million euros worth of military equipment in warehouses and other stocks, worth 4 million euros, that were intended for export under licenses issued by the Economy Ministry. However, the stock cannot be dispatched to the clients.
LiTak-Tak says it had to lay off a third of its 48 employees.