2021.12.08 10:01

Lithuania's railways to continue transporting Belaruskali products in December amid US sanctions

BNS2021.12.08 10:01

As US sanctions come into effect on Belarus' fertiliser manufacturer Belaruskali, Lithuania's state-owned railway company will continue transporting its cargo throughout December.

Lietuvos Geležinkeliai (Lithuanian Railways, LG) said on Wednesday it had pre-paid contracts with Belaruskali, the world's biggest potash exporter.

Read more: Lithuania gears up for losses as US slaps sanctions on Belarusian company

LG's freight company LTG Cargo is estimated to transport around 1 million tons of fertilisers in December, meaning that six to nine freight trains will move via Lithuania's territory every day to the Baltic port of Klaipėda.

US sanctions on Belaruskali were announced in August and fully come into force on December 8.

Whether LG will continue providing services to the Belarusian company beyond December will depend on the sanctions regime, decisions by Lithuanian government institutions and whether banks will continue servicing Belaruskali's transactions, according to LG's statement.

LG is consulting Lithuanian, EU and US institutions, including the Office of Foreign Assets Control (OFAC) of the US Treasury Department, regarding the existing situation.

Up until now, LTG Cargo gas carried over 10 million tons of Belaruskali cargo a year for around 60 million euros.

LTG Cargo hopes to carry more cargo not only in Lithuania but also in Poland and Ukraine, and is also awaiting new opportunities once the Rail Baltic European gauge-standard railway project is completed.

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