Belaruskali Expects Lithuania To Fully Compensate Contract Termination - State Media

Belaruskali, the largest Belarusian fertilizer producer, will demand that Lithuanian Railways compensate all losses stemming from its decision to unilaterally abandon a contract on the transit of Belarusian fertilizers under US sanctions, Belarus public television reported on Wednesday

MINSK (UrduPoint News / Sputnik - 26th January, 2022) Belaruskali, the largest Belarusian fertilizer producer, will demand that Lithuanian Railways compensate all losses stemming from its decision to unilaterally abandon a contract on the transit of Belarusian fertilizers under US sanctions, Belarus public television reported on Wednesday.

A "warning letter" has already been sent to the Lithuanian state-owned company to say that Belaruskali expects full compensation of losses, including those borne by its partners in other countries, the report said.

The contract, signed in 2018, committed Lithuanian Railways to transiting 11 million tones of Belarusian fertilizers per year through Lithuania's territory until 2023.

On December 8, the United States sanctioned Belaruskali and asked its allies to terminate all business with the Belarusian company. Lithuanian Railways refused to comply immediately, saying that it had already been paid for transit through December and would respect its contractual obligations. This caused a domestic political controversy in Lithuania, with Foreign Minister Gabrielius Landsbergis and Transport Minister Marius Skuodis announcing their resignation, which the prime minister refused to accept.

On January 12, the Lithuanian government enforced the contract's annulment starting February 1, saying that a special commission found it to be contrary to Lithuania's national interests.