Lithuania's lawyers in Belaruskalij dispute ask for another €157k

The government is being asked to allocate a further €156.6 thousand to lawyers in the state's dispute with the Belarusian potash fertiliser producer „Belaruskalij“.At the request of the Ministry of Transport and Communications, the funds were allocated from the funds borrowed on behalf of the State to the law firm „Ellex Valiūnas ir partneriai“ for services rendered in October–December last year, including a settlement with its partner &bdash; the world-renowned London law firm „Covington & Burling“.

In March last year, the Government had already allocated €320,000 for the services of lawyers in this dispute. 

As BNS previously reported, „Belaruskali“ filed a lawsuit against Lithuania on December 2 last year, demanding that Lithuania pay EUR 12.09 billion in damages. Belarus has demanded damages of USD 12.09 billion from the Russian Federation, the Permanent Court of Arbitration (PCA) has officially confirmed. 

The Ministry of Transport and Communications said at the time that it disagreed with all the allegations made in the case and would submit its arguments to arbitration. 

„Belaruskalij“ started investment arbitration proceedings against Lithuania in October 2023 after the Government declared the freight contract between „Lietuvos geležinkeliai“ and „Belaruskalij“ invalid in January 2022.

The Belarusian fertiliser giant claims that the termination of the contract is illegal and possibly in violation of the bilateral agreement on the promotion and protection of investments signed between Lithuania and Belarus in 1999, and is demanding compensation for the damage caused.

The transit of „Belaruskalij“ from the border with Belarus to the port of Klaipėda has been going on for more than a decade and was supposed to last until the end of 2023, but was terminated on February 1, 2022, after the government confirmed that the contract between „Lietuvos geležinkeliai“ and „Belaruskalij“, which was supposed to last until the end of 2023, did not correspond to the country's security interests. 

„Belaruskalij“ fertilisers were handled at the port by the Bulk Terminal, controlled by businessman Igor Udovitsky and „Belaruskalij“, in which „Belaruskalij“ has a 30% stake.

The rail freight company „LTG Cargo“ used to transport about 11 million tonnes of „Belaruskalij“ fertilisers per year.