Russian and Belarusian companies could use foreign-based banks, among other ways, to pay Lietuvos Gelezinkeliai (Lithuanian Railways, LTG) for transit shipments via Lithuania to Kaliningrad, Transport Minister Marius Skuodis has said.
“I can neither confirm nor deny that Siauliu Bankas is the only bank processing payments for transit shipments, but what is very important is that Lithuania operates in a single market where there are many financial institutions, and if one institution does not want to take the risk of one or another transfer, there are always other institutions in other countries that can do so,” Skuodis said.
“I don’t see any major problems with that,” he added.
The minister’s comment comes as Lithuania’s authorities are seeking guarantees for the country’s banks that they will not violate international sanctions by processing Kaliningrad transit payments, even if this involves sanctioned goods or companies and individuals that are subject to sanctions.
Russia has previously said that its operators using the services of Lithuania’s state-owned railway company are made to pay for freight transport, adding that Vilnius has diverted all these payments through Siauliu Bankas. The latter is set to suspend all operations with Russia from September, except “where payments are made for humanitarian purposes or to ensure state functions”.
According to Skuodis, the Transport Ministry informed LTG back in July that, in the ministry’s opinion, payments for Kaliningrad transit shipments could proceed. The state-owned railway company shared the letter with banks, the minister added.
The Transport Ministry has also coordinated the transit payment procedure with the Financial Crimes Investigation Service (FNTT), which is responsible for ensuring that sanctioned individuals or entities do not benefit.
“We are in constant consultation with FNTT, but commercial banks, naturally, also consult FNTT to be sure about a transfer. This is currently being done for practically every shipment,” the minister said. (LRT/Business World Magazine)