Lithuania suspends transit of Russian oil as sanctions take effect

As of November 21, Lithuanian Railways (LTG) has completely stopped the transit of LUKOIL and its subsidiaries’ cargoes to the Kaliningrad region.

The decision comes in response to new U.S. and U.K. sanctions imposed on the Russian oil company, according to LRT.

LTG CEO Egidijus Lazauskas explained that adhering to the sanctions “helps manage business risks and reflects the values of the entire group.” The sanctions introduced at the end of October also target Rosneft, though its products have not been transported through Lithuania in recent years.

A transition period to complete existing shipments was announced on October 31. From that date, LTG no longer accepts new transit requests for LUKOIL cargoes. The company emphasises that none of its subsidiaries work directly with organisations affected by the latest U.S. and U.K. sanctions.

The restrictions apply not only to the parent company but also to its subsidiaries, including Litasco, LUKOIL’s Dubai-based trading unit. Previously, the European Union included LUKOIL in its 19th sanctions package.

Lithuanian media had reported at the end of October that Russian oil shipments to Kaliningrad were expected to be halted. The U.S. sanctions against LUKOIL and Rosneft were announced following statements by U.S. President Donald Trump that Russian President Vladimir Putin refuses to seek a path to peace in Ukraine. The new restrictions officially took effect on November 21.

By Tamilla Hasanova