Brussels allows only minimal aid for businesses hit by Russian sanctions
Thursday, August 14, 2014
The European Commission allows Lithuania to provide only small aid to its food producers hit by Russian sanctions. However, the EC will separately assess the country's situation, the Lithuanian Agriculture Ministry said on Thursday.
One of Lithuania's major dairy producers Pieno Žvaigždės says that import restrictions to Russia do not pose a threat to the company's existence, but they will have a negative impact on its profitability.
Lithuania’s exports of agricultural and food products to Russia fell by nearly 6 percent in the first half of this year to 2.353 billion litas (EUR 682m), from 2.504 billion litas in the same period last year, data made available by Statistics Lithuania shows.
In wake of Russia's embargo on dairy imports from Europe, Latvia's Food Union food group will reduced the price of its dairy products for the local market by up to 30%, with the aim of selling more of its products in Latvia and supporting Latvian farmers, writes LETA.
Speaker of the Lithuanian Seimas Loreta Graužinienė says she has reservations about cutting value added tax (VAT) rate for vegetables and meat. According to the head of Parliament, only retailers would benefit from VAT rate exemptions, while producers and consumers would not.
The European Union (EU) should consolidate in the field of defense and countries of the euro area should also deepen their cooperation, Spain's Foreign Minister Alfonso Dastis said in Vilnius on Wednesday.
In an unconventional effort to convince EU officials that Belarus' nuclear power plant is a safety hazard, the Lithuanian government has arranged a hot-air balloon ride for the bloc's energy commissioner to show him how close the construction site is to the Lithuanian capital.