Transition period ends: Lukoil products will no longer be transported in transit
After the transition period ends on November 21, Lukoil and related companies will no longer be able to transport oil or oil products by rail in transit from Russia to Kaliningrad.
In addition to the sanctions imposed by the United Nations and the European Union, the LTG Group also complies with the sanctions regime of the United States (US, OFAC) and the United Kingdom (UK, OFSI) in managing its business risks. Therefore, as of November 21, it will not carry out any shipments involving Lukoil and related companies sanctioned by the US and UK. These sanctions, announced at the end of October, also apply to Rosneft and related companies, but these products have not been transported by rail to Kaliningrad in recent years.
"Sanctions are a tool used by the international community to weaken countries that have started wars and to ensure security and justice. The LTG Group has defined the implementation and control of sanctions in a high-level document – the publicly announced Sanctions Implementation and Control Policy. Compliance with the sanctions recommended by the US and the UK is a consistent step that contributes to business risk control and resilience, and it also reflects the value position of the entire group," said Egidijus Lazauskas, CEO of LTG.
On October 31, the customers of LTG Cargo, the LTG Group's rail freight company, which are freight forwarding companies, were informed about the transition period for the completion of transactions. Since that date, no new applications for the transit of Lukoil or related companies' cargo from Russia to the Kaliningrad region have been approved.
It should be noted that none of the LTG Group companies have direct contractual relations with these companies sanctioned by the US and the UK.
Currently, 19 European Union and 8 United Nations sanctions packages are in place against Russia.
The LTG Group companies responsibly comply with Lithuanian and EU legislation on the application of sanctions, ensuring the control of sanctions and the implementation of restrictive measures in their field of activity. When evaluating applications for the transport of goods, the rail freight company LTG Cargo analyzes the entire transport chain and ensures that no sanctioned goods are transported, cargoes of companies included in the sanctions lists and cargoes of companies associated with sanctioned persons are not transported.