Week in Lithuania | Country to pull out from Cluster Munitions Convention, Seimas ups taxes on gambling operators – Baltic News Network

Last week, Lithuania and Ukraine signed 10-year bilateral security cooperation pact; EPP president backed Landsbergis for EC commissioner

Customs unveils sanction evasion scheme for Russia-bound car exports

Lithuania’s Customs Criminal Service revealed a sanction circumvention scheme for car exports from Lithuania to Russia and Belarus, the service said on Friday, the 28th of June. The scheme was aimed at circumventing the existing sanctions that prohibit the export of trucks to Russia and Belarus and their transit through Russia, except for the transport of goods, the service said. Trucks with semi-trailers, owned by business entities registered in Lithuania, leave for the countries in question, ostensibly to transport goods or to pick them up, but never return, and their registration is simply changed abroad, the customs service said.

Government seeks to pull out from convention on cluster munitions

The Lithuanian government decided on Friday, the 28th of June, to propose to the Seimas that Lithuania withdraw from the convention banning cluster munitions, according to a draft resolution registered by the Defence Ministry on Friday. Defence Minister Laurynas Kasčiūnas told journalists on Wednesday at the Seimas that the bill would be submitted to ministers for approval at next week’s government meeting, and the president is expected to submit it to the Seimas on the 11th of July. Lithuania’s withdrawal from the convention is necessary due to a change in geopolitical circumstances following Russia’s large-scale invasion of Ukraine, the minister explained. Kasčiūnas also says he has collected the signatures of 100 MPs in support of withdrawal from the convention. Foreign Minister Gabrielius Landsbergis told journalists on Friday that Lithuania’s withdrawal from the convention would increase Lithuania’s defence power.

President calls on EU Council to agree on Ukraine support package

President Gitanas Nausėda, who was attending the European Council meeting in Brussels, on Thursday, the 27th of June, urged EU leaders to agree on a support package for Ukraine and to pursue strengthening of the European defence industry. “Ukrainians need more ammunition and military equipment. Our support must meet this critical need. We must swiftly agree on the 6.6-billion-euro European Peace Facility package for Ukraine to ensure it reaches Ukraine fighting the aggressor in time,” a press release from the presidential office quoted the Lithuanian leader as saying during the meeting. Addressing European leaders, he also emphasized the necessity of continuing to tighten EU sanctions against Russia. He urged to find ways to use all frozen Russian funds, not just their revenues, for rebuilding Ukraine. During the security and defence debate, the president underscored that enhancing the European defence and security industry has become a top EU priority.

Lithuania, Ukraine sign 10-year bilateral security cooperation pact

Lithuanian and Ukrainian Presidents Gitanas Nausėda and Volodymyr Zelensky on Thursday, the 27th of June, signed a bilateral security cooperation agreement in Brussels. The agreement enters into force on the date of its signature and will be effective for ten years, the Lithuanian presidential office said in a statement. The agreement entails regular strategic and political dialogue meetings on all issues relating to Ukraine’s defence against the aggressor and victory, Lithuania’s military, humanitarian and financial support for Ukraine, strengthening Ukraine’s economic and energy stability and resilience, and support for its accession to NATO and the EU. It also outlines cooperation in cyber security, intelligence and counter-intelligence, as well as in combating chemical, biological, radiological, and nuclear risks.

Lithuania borrows one billion euros from over 20 countries

Lithuania on Wednesday, the 26th of June, borrowed one billion euros from more than 20 countries on international capital markets by issuing a 7-year Eurobond at an annual interest of 3.5%. According to the report, demand for the new bonds exceeded borrowing needs three times and the risk premium over the average swap rate was 90 basis points. The issue was placed at a yield of 3.682% and the issue price was 98.895% of the nominal value. The Eurobonds will be redeemed on the 3rd of July and will mature on the 3rd of July 2031. Deutsche Bank, HSBC and Societe Generale have been selected as underwriters, while Swedbank has been selected as co-lead manager.

EPP president backs Landsbergis for European commissioner

The European People’s Party’s (EPP) President Manfred Weber on Wednesday, the 26th of June, endorsed Lithuanian Foreign Minister Gabrielius Landsbergis, leader of the ruling conservative Homeland Union – Lithuanian Christian Democrats (HU-LCD), to become a member of the European Commission, although Landsbergis himself has refused to comment on such reports. On Tuesday, the 25th of June, Landsbergis stated that he had not discussed his possible candidacy with Prime Minister Ingrida Šimonytė and noted that the decision did not depend on his wishes. President Gitanas Nausėda has said that he sees better candidates than Landsbergis but has not named them.

SDC supports plans to allocate at least 0.25% of GDP annually to Ukraine

Lithuania’s State Defence Council (SDC) on Tuesday, the 25th of June, backed plans to allocate at least 0.25% of gross domestic product (GDP) annually for military assistance to Ukraine. “The members of the SDC agreed that Lithuania’s annual military and security assistance for the next three years should not be less than 0.25% of GDP, or 190 million euros per year in today’s figures,” Kestutis Budrys, President Gitanas Nausėda’s chief national security advisor, told reporters after the Council’s meeting. According to Budrys, a year ago the Council endorsed the defence minister’s three-year plan for support to Ukraine, which envisaged 200 million euros worth of military assistance to Ukraine over the next three years.

Seimas ups taxes on gambling operators

The Seimas of Lithuania increased taxes on gambling operators by 2% after 72 lawmakers on Tuesday, the 25th of June, voted in favour of the amendments to the Law on Lottery and Gambling Tax and nine abstained. From 2025, the tax base for slot machines, table games, bingo, betting and remote gambling will be subject to a gross income tax rate of 22%, up from the existing 20%. Finance Minister Gintarė Skaistė, who initiated the higher changes, says it will not have a significant impact on the business. In 2023, gross gambling revenues amounted to 222.2 million euros, up by 13.5% from 2022, and gambling operators’ profits rose to 59 million euros.

Belarusian activist contests denial of asylum in Lithuania

Olga Karach, a prominent Belarusian activist who heads the Nash Dom (Our House) NGO, has appealed to the European Court of Human Rights (ECHR) over the refusal to grant her asylum in Lithuania, her lawyer said on Monday, the 24th of June. Early in January, the Supreme Administrative Court of Lithuania upheld the lower court’s ruling denying asylum to Karach. The Migration Department denied Karach asylum last August, citing as the reason the State Security Department’s conclusion that her residence in the country posed a national security threat due to her alleged ties with Russian intelligence. However, the migration body then granted the activist a temporary residence permit in Lithuania on humanitarian grounds, which can be extended. The activist, who has been receiving residence permits in Lithuania since 2014, applied for asylum last year.

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