The decision was made after the administration received a report from the State Security Department, which revealed close cooperation between Avia Solutions Group's board chairman Gediminas Žiemelis and businessmen close to Russia's President Vladimir Putin who are subjected to Western sanctions, LNK television channel reported in its news broadcast on Thursday.
Last August, Avia Solutions Group signed a contract with the company Rostec on construction and development of a Moscow airport, which will be the fourth airport in the Russian capital. According to information available to the State Security Department, the Russian company is headed by Sergey Chemezov who, together with Putin, served as KGB agents in Dresden. Chemezov is subjected to Western and European Union sanctions.
Avia Solutions Group also aimed to build airplane repairs and painting hangars in Šiauliai Airport and was considering moving its pilot training centre from Vilnius.
Last autumn, Rail Skyway Systems, a controversial company with two Moscow residents as its shareholders, also had plans to build a laboratory for trains running on "string tracks" on a plot of land close to Šiauliai airport. The administration of the town terminated the contract amid doubts about the company's credibility.
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