After a few years of inquiry, the European Commission (EC) may this week announce sanctions for the state-owned railway company Lietuvos Geležinkeliai (Lithuanian Railways) for limiting competition by 2008 dismantling of a rails between Mažeikiai, a city in northern Lithuania, and Renge, Latvia.
Lietuvos Geležinkeliai
© DELFI / Domantas Pipas

The maximum fine for the Lithuanian railway company is predicted to be around 35 million euros.

Ahead of the decision, Latvia, which had filed the appeal against Lithuania, intensified pressure and handed an official note with a demand to rebuild the railway stretch and restore the possibility of transporting freight on Latvian railways.

Poland's Orlen concern, which operates an oil refinery in Mažeikiai and the Butingė terminal, has also reported the dismantled railway to Brussels, however, Lithuania has lately improved its ties with the company.

Lithuania's Prime Minister Saulius Skvernelis confirmed to BNS he had information about the finding to be announced next week.

"I know," said the prime minister when asked whether he knew about the decision expected next week.

"Let's refrain from guesswork, we have preliminary knowledge but let's not guess. In any case, we will use every legal possibility to prove that we're right," said Skvernelis in comment of the possible sanctions.

Under EU rules, competition violations may carry a fine of up to 10 percent of the annual turnover of the last year. LG revenue from freight transportation stood at 350.4 million euros in 2016, consequently, the maximum fine could reach 35 million euros.

An appeal against the EC fine may be filed with the European Union Court based in Luxembourg. Furthermore, payment of the fine would not cancel the duty of removing the violation, with parties still able to file claims.

Brussels has also urged Lithuania to separate the LG operations, however, critics of the idea have said the state could lose the profitable freight haulage operations.

Lithuanian officials have publicly said the railway stretch had been dismantled in 2008 for security reasons.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
0
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Clearer visions of the future in the strategic plans of the SOEs

An evaluation carried out by the Governance Coordination Centre , an institution promoting the good...

Earthport receives European Payment Institution license in Lithuania

The Lithuanian subsidiary of London-based cross-border payments facilitator Earthport (AIM: EPO) –...

Lithuanian residents‘ spending on computer games increases

The State Tax Inspectorate (hereinafter referred to as the VMI) informs that the residents of...

Geton Energy joined Nasdaq Commodities OMX in Scandinavia

Geton Energy, the company of the group of energy companies of Lietuvos Energija since 2017 operating...

Dream housing for a Lithuanian – somewhere in a major city or tucked away in the nature’s lap

With unlimited financial possibilities at hand, more than half of Lithuanians would choose to live in...