Lithuania’s railways to continue transporting Belaruskali products in December – media

<p> MINSK, Dec 8 - PrimePress. Lithuania’s state-owned railway company (Lietuvos gelezinkeliai, LG) will continue transporting transit cargoes of Belarus’ fertiliser manufacturer Belaruskali to the Port of Klaipeda, BNS reports. </p> <p>   </p> <p> The reports says that LG’s freight company LTG Cargo is estimated to transport around 1 million tons of Belarus-made potash fertilisers in December, meaning that six to nine freight trains will move via Lithuania’s territory every day to the Baltic port of Klaipėda. </p> <p>   </p> <p> Lietuvos Geležinkeliai (Lithuanian Railways, LG) said on Wednesday it had pre-paid contracts with Belaruskali. Whether LG will continue providing services to the Belarusian company beyond December will depend on the sanctions regime, decisions by Lithuanian government institutions and whether banks will continue servicing Belaruskali’s transactions, according to LG’s statement. </p> <p>   </p> <p> “LG is consulting Lithuanian, EU and US institutions, including the Office of Foreign Assets Control (OFAC) of the US Treasury Department, regarding the existing situation.” </p> <p>   </p> <p> Up until now, LTG Cargo gas carried over 10 million tons of Belaruskali cargo a year for around €60 million. </p> <p>   </p> <p> The management of the Klaipeda Port (Lithuania) no longer includes Belaruskali cargo into its 2022 plans, meaning that the port’s handling volumes are estimated to drop around 30%, said Klaipeda Port CEO Algis Latakas. </p> <p>   </p> <p> Under the OFAC order of August 9 (US Office of Foreign Assets Control), any transactions with Belaruskali or any other company with Belaruskali's direct or indirect ownership of 50 percent or more, need to be wound down by 7 p.m. Lithuanian time on December 8. </p> <p>   </p> <p> As previously reported, on 24 June 2021, the EU Council imposed sanctions targeting seven sectors of the Belarusian economy, including restrictions on the import and transit of potash from Belarus under contracts signed after 25 June 2021. The restrictions apply only to potash with a nutrient content (potash K2O) of less than 40% and over 62% (technical potash - used in metallurgical, chemical and petrochemical industries). Potassium fertilizers with a nutrient content of 40% to 62%, the most popular potassium fertilizers in the world, are not yet subject to import ban. The list of products banned for import from Belarus also includes compound fertilizers containing potassium chloride (produced by Belaruskali and the Gomel Chemical Plant). </p> <p>   </p> <p> The United States on 2 Dec 2021 additionally included into the Belarus sanctions list Belarusian Potash Company (BPC, monopolist export trader in Belarusian potassium chloride) and its affiliate Agrorozkvit (Kiev, Ukraine). </p> <p> The OFAC license for transactions with these companies, in which Belaruskali has a proprietary interest, is valid until 1 April 2022. </p> <p>   </p> <p> Also on 2 December 2021, the UK imposed sanctions on Belaruskali. End </p>

2021-12-09

Primepress