Lithuania's phosphate fertiliser manufacturer Lifosa has asked for help from the state, saying it is unable to meet its obligations because of the EU sanctions against its indirect owner
The company in Lithuania’s Kedainiai employs more than 1,000 people.
“We are trying to overcome all the difficulties, and we are doing everything in our power to find solutions to the situation," Lifosa CEO Rimantas Proscevičius said in a statement on Monday.
“However, the state support is now vital to enable the continuity of the company’s operations and protect the well-being of our employees and their families,” he added.
With its accounts frozen, Lifosa cannot make labour-related payments to its employees, pay social security contributions and other employment taxes, as well as pay for services necessary for its operations, according to Proscevičius.
Lifosa’s accounts were frozen last Thursday after Russian oligarch Andrey Melnichenko, its indirect owner, was placed on the EU sanctions list.
The Lithuanian company is 100 percent owned by Swiss-registered Eurochem Group, in which AIM Capital, a Cyprus-registered firm of Melnichenko, holds a 90 percent stake.
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