I. Udovicky Hasenberg's dispute with Lithuania: the Government granted €100,000 to lawyers

After the shareholder of the cargo handling company Bulk Cargo Terminal (BKT) in the port of Klaipėda, the Swiss company „Hasenberg“, Hasenberg“, launched international arbitration against Lithuania, the government on Wednesday allocated more than EUR 100,000 for lawyers' fees.

At the request of the Ministry of Transport and Communications, 108.1 thousand euros were allocated from funds borrowed on behalf of the state to the law firm „Ellex Valiūnas & Partners“ and its partner – the UK law firm „Allen Overy Shearman Sterling“ for services rendered in the months of November – December 2024.

The ministry told BNS that „Hasenberg“ has been claiming against Lithuania since 2022, and its notice of arbitration was received in October last year.

„An arbitration tribunal is currently being formed. Until the arbitral tribunal is formed and the requirements for arbitration are decided, we cannot comment further," the ministry told BNS in a commentary. 

Portal lrt.lt, citing sources, reported in January this year that the company's alleged damages amounted to EUR 15 billion. 

According to him, „Hasenberg“ will try to prove that Lithuania has violated the 1992 treaty between Lithuania and the Swiss Confederation on the promotion of investments and their mutual protection.

In addition, „Hasenberg“ wants to prove that by stopping the transit of potash fertilisers of the Belarusian concern „Belaruskalij“ through Lithuania the state has allegedly caused damage to „Hasenberg“ and other companies of the same name. Udovickis' company „Gargždų geležinkelis“, that these actions were allegedly taken illegally, that this is leading to a shortage of fertilizers and food in Africa and Latin America, that Lithuania should not comply with the sanctions of the European Union, because there is a bilateral agreement on investment between Switzerland and Lithuania, wrote lrt.lt.

The ultimate beneficiary of „Hasenberg“ is I. Udovickis, who owns 100 percent of the shares of the Latvian company „Fortis Asset Management“, which manages „Hasenberg“. 

The government has declared the Bulk Terminal to be not in the national security interest in 2019. 

The years-long transit of „Belaruskalij“ fertilisers through Lithuania, and specifically through the BKT, was interrupted after the government's Commission for the Examination of Transactions of Strategic Enterprises, and subsequently the Government, decided that the Belarusian company's contract with „Lietuvos geležinkeliai“ did not comply with the interests of national security. In early March 2022, „Belaruskalij“ was sanctioned by the EU.

BNS previously reported that „Belaruskalij“, which filed a lawsuit against Lithuania in arbitration on 2 December last year, is demanding that Lithuania pay it €12.09 billion in damages. Belarusian Airlines has also claimed damages of USD 12.09 billion from the Permanent Court of Arbitration (PCA), the Permanent Court of Arbitration (PCA) formally confirmed in January. 

I. Udovickis owns 5% of BKT directly and 65% indirectly through „Hasenberg“. 30% of BKT's shares are also held by „Belaruskali“.