Lithuania Railways CEO to resign over Belarus potash transport

The chief executive of Lithuania's state-owned railway company, Mantas Bartuska, has agreed to step down to "de-escalate" the situation over the transport of potash from sanctions-hit Belarus, the company said on Tuesday. "The board and the CEO agreed that in order to de-escalate the situation and to minimize the risks to the company's reputation ...

The chief executive of Lithuania's state-owned railway company, Mantas Bartuska, has agreed to step down to "de-escalate" the situation over the transport of potash from sanctions-hit Belarus, the company said on Tuesday.

"The board and the CEO agreed that in order to de-escalate the situation and to minimize the risks to the company's reputation ... the best decision is that the CEO leaves after a transitional period," Lithuanian Railways (LTG) Chairman Kestutis Sliuzas told a news conference. LTG added in a statement that it lacked sufficient legal grounds to stop the transportion of potash.

Landlocked Belarus uses Lithuania's Klaipeda port to export potash from state-owned producer Belaruskali, one of the world's largest producers of potash, which is used to make fertilisers and is Minsk's main foreign currency earner. Belaruskali was sanctioned by the United States in August, one year after a crackdown following a disputed presidential election which President Alexander Lukashenko said he won.

A ban on sales of potash took effect on Dec. 8 after a four-month wind-down period, but potash continues to be transported via Lithuania. Outgoing CEO Bartuska said last week that LTG expects to continue transporting Belaruskali's fertiliser despite the sanctions, because they only apply to U.S.-connected entities.

He said LTG has a contract with Belaruskali which expires at the end of 2023 and that Belaruskali had paid in advance for railway services throughout December and a part of January. Opposition parties have said the continued transport of potash has damaged Lithuania's reputation among western allies.

Foreign Affairs Minister Gabrielius Landsbergis and Transport Minister Marius Skuodis have also offered to step down over the scandal and Prime Minister Ingrida Simonyte is expected to announce later on Tuesday if she will accept.

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