A further €0.69 million is being sought for the state’s disputes with ‘Belaruskalij’ and ‘Hasenberg’

The Ministry of Finance is proposing that the Government allocate a further 691,000 euros to fund Lithuania’s disputes in international arbitration proceedings with the Belarusian potash fertiliser producer “Belaruskalij” and the Swiss company “Hasenberg”, indirectly controlled by Igor Udovicki. 

The Government is expected to take a decision on Wednesday.   

The money, drawn from funds borrowed on behalf of the state, would be used to cover lawyers’ fees for services provided between April and June this year. According to the draft government resolution, no provision had been made for this in the 2026–2028 budget, as the need for such funds was not known.

At the request of the Ministry of Transport and Communications, the law firm “Ellex Valiūnas ir partneriai” and its partner – the UK law firm “Allen Overy Shearman Sterling” – representing Lithuania in the dispute with “Hasenberg”, an allocation of 318,200 euros is requested, whilst the same Lithuanian law firm and its partner – the world-renowned London firm “Covington & Burling” – for representing it in a dispute with “Belaruskalij” – a further €373,000. 

Since 2023, €4.93 million has already been allocated to cover legal fees in these arbitration cases.

As previously reported by BNS, “Belaruskalij” filed a claim against Lithuania with the Permanent Court of Arbitration (PCA) in December 2024, demanding compensation of US$12.09 billion.&

“Belaruskalij” has initiated investment arbitration proceedings after the Government declared the freight transport contract between “Lithuanian Railways” and “Belaruskalij” – the transport of potash fertiliser through Lithuania was suspended from 1 February of that year.

At that time, “Belaruskalij” ’s indirect shareholder “Hasenberg”, which operated the Birių Cargo Terminal (BKT) handling fertilisers at the Port of Klaipėda, also initiated international arbitration against Lithuania; arbitrators have already been appointed by the PCA.  

Last January, the lrt.lt website reported, citing sources, that the company’s calculated alleged damages amounted to 15 billion euros. According to the report, “Hasenberg” will seek to prove that Lithuania breached the 1992 Agreement between Lithuania and the Swiss Confederation on the Promotion and Mutual Protection of Investments.

“Belaruskalij” transit from the border with Belarus to the Port of Klaipėda had been taking place for more than a decade and was due to continue until the end of 2023, but was suspended on 1 February 2022. 

„Belaruskalij“ fertilisers were loaded at the port by BKT, in which „Belaruskalij“ holds a 30 per cent stake. I. Udovickis holds 5 per cent of BKT’s shares directly and 65 per cent indirectly, via “Hasenberg”.