The transit of Belarusian potash fertilisers via Lithuania cannot be suspended as that would run counter to Lithuania’s international agreements, says Igor Udovickij, the majority shareholder of the Bulk Cargo Terminal (Birių krovinių terminalas, BKT), which handles around 11 million euros worth of Belaruskali products every year.
"There are no, and there cannot be any US sanctions on Belarusian potash transit via Lithuania since transit, as a procedure, cannot be subject to sanctions," Udovickij, who has a 70 percent stake in BKT, said in a comment sent to BNS on Thursday.
In his words, all states, including the US, are subject to international treaties – the World Trade Organization agreement and the United Nations Convention on the Law of the Sea. They guarantee the freedom of transit for states without sea access.
"Naturally, having ratified these agreements, the US and the EU cannot violate them," the BKT owner said.
The Lithuanian parliament has also ratified three bilateral agreements between Lithuania and Belarus, setting the regime of free transit of Belarusian cargo via Lithuania and its port in Klaipėda, Udovickij added.
According to him, those involved in the transit of potash fertilisers, including Lithuanian state institutions, have consulted the US Treasury and the European Commission on the application of the sanctions. They were told that Belarusian potash can be transported via Lithuania if payments are made in euros instead of US dollars.
"Therefore, our actions are completely legitimate and coordinated," Udovickij said.
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He stressed that “US dollars continue to be used for payments during operations like the sale of Belarusian potash and vessel-chartering” adding that “American companies continue to buy the Belarusian product and this product is still delivered to the American market”.
He also reiterated that the US Office of Foreign Assets Control (OFAC) has issued a license to Belaruskali's subsidiary, the Belarusian Potash Company (BKK), which is valid until April 1, 2022.
"At least until that time, any speculations on the subject of American sanctions on the transit of Belarusian potash via Lithuania are just speculations," Udovickij said.
But even if BKK or Belaruskali failed to renew OFAC licenses after April 1, it would not impact Lithuania's commitments regarding the transit of Belarusian potash, he added.
Belaruskali, which exports around 95 percent of its fertilisers via Lithuania, owns the remaining 30 percent of BKT shares.
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