Payments for the transit of sanctioned goods between mainland Russia and its Kaliningrad exclave through Lithuania should continue, Transport Minister Marius Skuodis has said, but admitted that there might be “challenges”.
The last Lithuanian bank processing transactions from Russia and Belarus said it would stop doing it as of September, causing concern that this would disrupt the transit of goods to Kaliningrad, as Russian companies would not be able to pay Lithuanian Railways for transportation.
“On its part, the government has done practically everything it could, and as far as I know, payments should continue, though I wouldn’t rule out that certain entities may face challenges, which occur now, too,” Skuodis said.
According to the minister, payments are primarily a matter of commercial relations.
“Transit of goods is not an important function for the state. It is an important commercial service on which those involved in commercial relations negotiate, banks make decisions, payments take place and exceptions are possible,” Skuodis said.
“There will be a lot of challenges as far as payments are concerned, because sanctions are being tightened and commercial entities are abandoning certain relations with the countries at war,” he said.
Siauliu Bankas, which currently processes payments with Russian companies, has said that it will stop handling transactions for the transit of sanctioned goods of Russian origin through Lithuania from September 1, as this may violate international sanctions.
The bank has said recently that it is sticking to its position not to process payments involving Russian and Belarusian entities as of September, adding that some exceptions are possible, but each situation will be looked into on a case-by-case basis.
Lithuanian Railways (LTG) resumed the transit of sanctioned goods between Russia and Kaliningrad on July 22 after the European Commission said in its updated guidance that a limited amount of cargo could be transported. (LRT/Business World Magazine)
