Lithuanian government’s efforts to mitigate impact of Russian trade sanctions

According to the government’s report which was announced on Monday, the Ministry of Economy has increased financing of the instrument New Opportunities by LTL 12.3 million (EUR 3.5 million). 253 enterprises were allocated LTL 27.7 million (EUR 8.0 million) for participation in exhibitions, business missions and other export promotion events. The supported companies expect to visit more than 1,200 exhibitions.

Following the economy minister’s order, preferential loan, loan guarantee and interest compensation arrangements were approved for businesses affected by the Russian sanctions. Companies will be compensated 95 percent of yearly interest irrespective of whether they operate in the regions.

Private storage of butter, skimmed milk powder and cheeses was authorised for Lithuanian agricultural producers on 8 September seeking to mitigate the consequences of the Russian embargo. Meanwhile, intervention buying of butter and skimmed milk powder was extended to 31 December 2014.

The Government confirmed LTL 117 million (EUR 34 million) for 2014 transitional period national support to agricultural enterprises for milk, livestock and crops. LTL 62 million (EUR 18 million) will be paid additionally in 2014.

Business promotion agency Enterprise Lithuania has started providing special advice and market research services. It also prepared and sent out new agreement and application forms regarding free search of business partners.

Making use of diplomatic measures the Ministry of Foreign Affairs has invoked Lithuanian Embassies to actively work with potential export partners regarding agricultural and food product export, as well as regarding issuance of necessary certificates and import permits.

The Government has expanded the territory covered by Lithuanian commercial attaché to China. The attaché now oversees Korea, Mongolia and Vietnam. The Lithuanian commercial attaché in the United Kingdom has been appointed to work with Oman as well.