Estonia's railway services and investment group Skinest Rail, the owner of Lithuania's Skinest Baltija, is considering taking Lithuania to an international arbitration court over an alleged bilateral investment promotion agreement violation after losing a battle in local courts.
© DELFI / Kiril Čachovskij

Based on a draft government resolution that has been made publicly available, the Transport Ministry will likely be authorized to represent Lithuania in all possible disputes with Skinest Rail.

A Skinest Rail official, who asked not to be named, told BNS that the company plans to defend its rights outside of Lithuania, with filing an international arbitration claim being among the options.

Lietuvos Geležinkeliai (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 contract with Skinest Baltija, worth over 3 million euros, was not in line with national security interests.

It said in a resolution Skinest Rail's owner Oleg Ossinovski "maintains relations with institutions of foreign states or natural or legal persons from those states which increase the risk or pose a threat to national security".

Also, Ossinovski was a suspect in a corruption case in Latvia.

Lietuvos Geležinkeliai in June signed a contract on railway sleepers with Swetrak, the runner-up bidder.

Skinest Rail unsuccessfully appealed the decisions by the state railway company and the government to Lithuanian courts.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuanian president says UK should decide what it wants in Brexit talks

Lithuanian President Dalia Grybauskaitė says the United Kingdom should decide what it wants to...

Lithuanians have better opinion about EU than other countries – EP survey

Lithuanians have a favorable opinion about the European Union and the country's EU membership. But...

Lithuania plans to open embassies in UAE, Australia, Indonesia

Lithuania plans to open embassies in the United Arab Emirates, Australia and Indonesia over the next...

Lithuanian president, EU leaders to discuss stalling Brexit in Brussels

Lithuanian President Dalia Grybauskaitė is on Wednesday leaving for Brussels to meet with other EU...

Seimas speaker invites Palestinians to open Baltic representation in Lithuania

Viktoras Pranckietis , the speaker of the Seimas, invited Palestinians to set up a representative...