Mantas Bartuska, the head of the Lithuanian State Railway, agreed to step down on Tuesday (December 14) in order to “moderate” public outcry against the transportation of potash from Belarus hit by sanctions, but the company said it could not stop providing convenience for the time being.
This issue has shaken public opinion in the Baltic States, one of Europe’s most outspoken critics of human rights violations in Belarus, forcing Prime Minister Ingrid Simonet to consider resigning, despite her announcement on Tuesday that she will stay in office.
Inland Belarus uses the Port of Klaipeda in Lithuania to export potash from the state-owned producer Belaruskali. Belaruskali is one of the world’s largest producers of crop nutrients and is Minsk’s main source of foreign exchange income.
Kestutis Sliuzas, Chairman of the Lithuanian Railway Company (LTG), said: “The board of directors and the CEO agreed that in order to ease the situation and minimize the risk to the company’s reputation… the best decision is for the CEO to leave after the transition period.” Press conference.
LTG added in a statement that it lacks sufficient legal basis to stop the shipment of potash.
Belarusian President Alexander Lukashenko claimed that he won a controversial presidential election, and a year later, Belarus was sanctioned by the United States in August.
The potash sales ban took effect on December 8 after a four-month buffer period, but potash continued to be shipped through Lithuania.
The outgoing chief executive Bartuska said last week that despite the sanctions, LTG still hopes to continue to transport Belaruskali’s fertilizers because they only apply to entities associated with the United States.
He said that the contract between LTG and Belarus will expire at the end of 2023, and Belarus has prepaid railway service fees throughout December and January.
Sliuzas said the company tried to refund the advance payment immediately after Bartuska’s meeting with Simonyte last week, but Belaruskali’s bank did not accept transfers.
secondLooking for alternatives
The opposition parties stated that the continued transportation of potash has damaged Lithuania’s reputation among Western allies.
However, Simonite issued a statement late at night after meeting with Foreign Minister Gabrielius Landsbergis and Minister of Transportation Marius Scudis to consider her resignation and the two ministers’ proposal to step down. Political instability is also a problem.
Sliuzas of LTG stated that Bartuska is in contact with the two ministers because he is considering whether to continue shipping potash.
She said: “In view of… the challenges posed by the new crown virus and immigration, even if you try to form a new majority or significantly change the composition of the government, you cannot bear the risk of uncertainty that this brings.”
Together with Poland, the population of the Middle East and Africa seeking to cross the border from Belarus has increased sharply this year. The European Union described this as an immigration crisis orchestrated by Lukashenko.
Simonite stated that Vilnius will look for a “path that poses the least risk to the country before rejecting Belarusian goods” while continuing to support sanctions pressure.
LTG’s Sliuzas said that if the Lithuanian government changes legislation to allow it to breach the contract, or when the US Treasury Department’s buffer period for BPC transactions expires on April 1, the company may be able to stop potash transportation.
Bartuska said last week that if there is no legal basis, LTG may face international arbitration and fines that may lead to its bankruptcy.
