The draft decree provides for the responsibility of companies to ensure that products manufactured in Lithuania do not reach Russia. Provisions prohibiting the export of dual-use goods by air to third countries will be replaced by real control mechanisms to prevent possible circumvention of sanctions. The ban on exports to third countries by land remains in place.
"The business community agrees with the key principles of these amendments and supports our aim to ensure that sanctions against Russia are applied accurately and effectively, and that possible circumvention is prevented. However, we also need to ensure the viability of Lithuania's high value-added industry, which strengthens our economy and our financial capacity to support Ukraine and Lithuania's security needs," said Minister of the Economy and Innovation Lukas Savickas.
If the government approves the draft decree, companies will be required to stipulate in contracts with recipients of the goods that re-export of these goods is prohibited, in line with EU regulations. In addition, exporters will have to provide written confirmation to the Customs Department that the recipients of the goods have been informed of the possible physical inspection of the export and that they do not object to it. These documents will help to ensure an effective and workable control mechanism.
Companies are also required to provide the Strategic Goods Commission with monthly information on goods exported by air. The names, codes, quantities, values, names of consignees and end users must be provided.
The decree obliges the Ministry of the Economy and Innovation, in cooperation with other authorities, to evaluate the information collected on exported goods and to decide by 1 July whether licensing of certain groups of goods is necessary and whether it is appropriate to continue frequent reporting by companies.
If a specific company is found to have violated the government decision, the ban on air exports will apply only to that company and not to all Lithuanian companies.
"The resolution aims to clearly define the division of responsibilities between the state and business with regard to the effectiveness of sanctions, to establish control mechanisms and to ensure that companies involved in sanctions evasion are subject to the export ban. It also aims to ensure that the regulation of air exports is in line with EU regulations, ensuring a level playing field at the European level and avoiding the forced export of Lithuanian exports through neighbouring countries," said L. Savickas.
The amendments to the Government Decree were drafted in close cooperation with the Ministry of Foreign Affairs, the Ministry of Justice, the Customs Department and other relevant authorities. The decree would enter into force immediately after its adoption.
The main elements of the proposed Government Decree are:
- The ban on exports of dual-use items by land to third countries will continue.
- Exports by air to third countries will be allowed in accordance with EU regulations applicable to all EU countries.
- A ban on re-export to Russia or third countries will be included in exporters' contracts with their customers.
- An obligation for exporters to provide written confirmation to customs that the consignees of the goods have been informed of the possible physical inspection of the export is introduced.
- Exporters are obliged to provide the Strategic Goods Commission with monthly information on goods exported by air, including their names, codes, quantities, value, consignees and end-users.
- The Ministry of the Economy and Innovation is obliged to evaluate the information provided by companies and decide by 1 July whether certain goods should be licensed.
- If it is found that sanctioned goods from Lithuanian producers reach Russia through intermediaries, the Lithuanian company concerned will be banned from exporting to third countries.
