The European Commission will fine Lithuanian Railways up to €50 million for disassembling almost 20 kilometres of the Rengė section of railway track, reports the Polish portal, citing European Commission sources.
© DELFI / Tomas Vinickas

The European Commission fine could be up equivalent to up to 10% of Lithuanian Railway’s annual revenue. In 2014 the company’s revenue it €473 million meaning that the European Commision fine could reach €50 million.

The Rengė section was dismantled in September 2008 forcing railway traffic between Lithuania and Latvia to be suspended. As a result, Orlen had to send its cargo to Latvia through a far longer route which was more expensive to the company, but that meant additional revenue for Lithuanian Railways.

The European Commission fine on Lietuvos geležinkeliai would allow the Polish company Orlen to claim for compensation for the damage the company suffered from the disassembling of the railway section.

Last year Lietuvos geležinkeliai said that Rengė section reconstruction project was ready, but has not been started due to lack of funds.

According to preliminary estimates, the reconstruction of the section would cost about €11.5 million. It is expected that part of the funds could be covered with the EU funds.

Skusevicius appointed ambassador to Canada

Lithuanian President Gitanas Nauseda on Thursday appointed Deputy Foreign Minister Darius Skusevicius...

MPs reject President Nauseda's second veto

The Lithuanian parliament overrode on Thursday a presidential veto on its decision to add two road...

Ambassadors to NATO and Russia recalled

President Gitanas Nauseda recalled on Wednesday Lithuania's ambassadors to Russia, NATO and UNESCO...

European greens: Sinkevicius not our candidate but has good ideas

Lithuanian's European commissioner -designate Virginijus Sinkevicius is not their candidate but he...

Zemaitaitis ousted as vice-speaker of parliament

Remigijus Zemaitaitis , the Order and Justice party's leader, has been ousted as vice-speaker of...