On 20 July 2022, Lifosa was added to the list of sanctioned companies. After two years of stagnation and working under extremely difficult conditions, the company can finally rejoice – the FNTT has removed the company from the sanctioned list. But only on one condition.

Changes in management, problems solved in the courts

There are currently 16 companies on the list of sanctioned companies. One of them is „Eurochem Logistics International“ UAB, the main shareholder of which is Andrey Igorevich Melnichneko „ the same person who was the main shareholder of „Lifosa“. Later, his wife Alexandra became the main beneficiary, but soon she too was added to the list of people sanctioned by the EU.

The company was closed for a while, but the central government allowed it to resume operations after the appointment of an interim administrator.

A number of individuals and companies had taken his place, and disagreements with the first interim administrator appointed by the government led to the departure of the then director Rimantas Proscevičius and a number of other long-standing employees.

The company said that it had made a loss of over €100 million in 2022–2023 alone, when it was placed on the sanction list.

„Lifosa“ sought its removal from the list of sanctioned companies before the Vilnius Regional Administrative Court.

Sanctions will not be imposed as long as the interim administrator is in place

A resolution was adopted at the end of June that as of the first of July, „Lifosa“ was removed from the list of sanctioned companies.

However, it seems that this deletion – is almost a technical matter related to the amendments to the list of sanctioned companies.

A resolution signed by Mindaugas Stravinskas, Deputy Director of the FNTT, announces that as of 25 June this year, UAB „Valnetas“ has been appointed as provisional administrator of the registered AB „Lifosa“. This appointment continues until 22 May next year.

With effect from 1 July 2024, following the amendments to the Schedule of Sanctioned Companies, AB „Lifosa“ is to be removed from the list until AB „Lifosa“ has an interim administrator appointed.

The company has not yet commented on whether these changes will lead to any changes in the company's operations.