Legislation, Lithuania, Railways, Transport

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 20:53

Transport Ministry to represent Lithuania in dispute with Estonia's Skinest Rail

BC, Vilnius, 24.10.2018.Print version
The Lithuanian Transport Ministry will represent the government in its dispute with Estonia's railway services and investment group Skinest Rail, which claims that the country has violated a bilateral investment promotion agreement.

The Cabinet on Wednesday authorized the ministry to represent Lithuania in all disputes with Skinest Rail until late 2022. 


Skinest Rail informed the government on August 16 that it would turn to the Washington-based International Centre for Settlement of Investment Disputes (ICSID) if no amicable agreement is reached within six months. 


Lietuvos Gelezinkeliai (Lithuanian Railways) earlier this year refused to sign a contract on the purchase of railway sleepers with Skinest Rail, which had been named the winning bidder. 


The Lithuanian government stated in June that the planned contract with Skinest Baltija, worth over 3 million euros, was not in line with national security interests.


Following the government's decision, Skinest Baltija CEO Valdas Rasimas told LETA/BNS that he company would not only contest the decision in Lithuanian courts, but it might also seek compensation for the Transport Ministry's public statements about the company. 


He said the government's actions were negatively affecting the company's operations.






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