Following Moscow’s invasion of Ukraine, only slightly more than half of the Lithuanian companies exporting to Russia have severed business ties with the aggressor state, according to the State Data Agency.
The latest data showed that more than 260 Lithuanian companies were still exporting to the aggressor country – around half of those that were doing so in January last year before Russia’s full-scale invasion of Ukraine.
“Those who had determination have left the market. But some companies still operate in the aggressor countries, ie Russia and Belarus,” Marius Dubnikovas, Vice President of the Business Confederation, said.
Products most often exported to Russia by Lithuanian companies include optics, medical and measuring instruments, vehicles, electrical equipment, video and sound equipment, as well as boilers and mechanical equipment.
“If we look at trade statistics, those goods that are not sanctioned continue to go from Lithuania to Russia. And we see that trade with Russia continues to grow,” said Sigitas Besagirskas, President of the Vilnius Association of Industry and Business.
According to the State Data Agency, Lithuanian companies’ exports to Russia were worth over 770 million euros in the first quarter of last year, compared to over 850 million euros in the third quarter of 2022.
The statistics also include electricity flowing to Russia through the common ring, calculated at exchange prices, even though Lithuania does not sell electricity to Russia. Excluding electricity, exports to Russia are down but only by about a tenth.
“Exports of Lithuanian goods to Russia and Belarus have been declining significantly throughout the year. As far as non-Lithuanian products are concerned, this concerns the EU and what other EU countries export through Lithuania,” said Karolis Zemaitaitis, Deputy Economy and Innovation Minister.
“Whether this is right is a question of ethics and conscience of every business,” he added.
However, only a few Lithuanian businesses that still operate in Russia are publicly known. The State Data Agency says the law prohibits it from publishing the names of the companies trading with the aggressor countries without their consent.
The President of the Vilnius Association of Industry and Business believes the authorities should change the law.
“At the very least, the names of companies that still operate in Russia and Belarus should be made public. I personally wouldn’t want to buy goods from a company that trades with Russia,” Besagirskas said.
Laurynas Kasciunas, chairman of the Parliamentary Committee on National Security and Defence, said the question would be raised in the Seimas.
“Commercial ties with a terrorist state mean that you bear a certain moral burden because your ties with that state allow it to continue to function,” Kasciunas noted.
Deputy Economy and Innovation Minister Zemaitaitis, however, believes that businesses themselves must be willing to withdraw from Russia because they will find ways to circumvent publicity if needed. (LRT/Business World Magazine)