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.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

President: Lithuania is lucky to have 'worthy' candidates in runoff (1)

Lithuania is fortunate to have two "worthy" candidates competing with each other to be elected...

Presidential candidates' teams trade accusations over campaign funding

The staffs of Ingrida Simonyte and Gitanas Nauseda , the two candidates vying to be elected...

Baltic countries and US agrees on cooperation format for energy security

President Dalia Grybauskaitė together with the Presidents of Latvia and Estonia met with the U.S....

Lithuanian experts: Zelensky calls snap election to avoid "sticks in his wheels"

Ukraine 's new President Volodymyr Zelensky on Monday called a snap parliamentary election to give...

Early voting in presidential runoff, EP election starts

Early voting in the presidential runoff and the European Parliament election started in Lithuania...