Lithuanian Railways (LTG) on Friday suspended the transit of cargo belonging to Lukoil and its affiliated companies to the Russian exclave of Kaliningrad, following new US and UK sanctions against the oil giant.
“Compliance with the recommended US and UK sanctions is a consistent step that contributes to business risk control and resilience, and also reflects the value position of the entire group,” LTG CEO Egidijus Lazauskas said in a statement.
The sanctions, announced at the end of October, also target Rosneft and its subsidiaries. However, Rosneft products have not been transported by rail to Kaliningrad in recent years, according to LTG.
LTG Cargo, the freight arm of the state-owned group, notified its customers on October 31 that a transition period would be granted for the completion of existing transactions. Since that date, no new applications for the transit of cargo belonging to Lukoil or related companies have been approved.
The railway operator stressed that none of its subsidiaries have direct contracts with companies newly sanctioned by Washington or London.
LRT reported in late October that LTG was preparing to halt the shipment of Russian oil companies’ cargoes to Kaliningrad and that a transition period would be introduced.
The United States announced sanctions against Rosneft and Lukoil in October after President Donald Trump accused Vladimir Putin of refusing to seek peace in Ukraine. The measures take effect November 21.
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