The authorities of Kaliningrad have found a way to pay for transit bypassing the Lithuanian bank

The Kaliningrad authorities have found an alternative mechanism for paying for transit through Lithuania, bypassing Siauliai Bank, reported “RIA Novosti” with reference to the head of the press service of the government of the region Dmitry Lyskov.

“An alternative mechanism for paying for Kaliningrad transit through Lithuania has been found, and many companies are already using it,” Lyskov said. The head of the press service did not disclose the details of the new payment method.

On July 28, it became known that the Lithuanian “Shaulyai Bank”, serving the transit of goods to the Kaliningrad region, from September 1 refuses from working with Russia. The governor of the Kaliningrad region, Anton Alikhanov, said that a discussion is underway to solve this problem. On the same day, Russian Charge d’Affaires in Lithuania Sergei Ryabokon handed over a note to the Lithuanian Foreign Ministry due to a possible stop to accept payments for transit.

5 August Lithuanian Association of Banks reportedthat the organization is waiting for clarification from the authorities of the republic regarding the Kaliningrad transit – credit organizations are afraid to service payments on it because of the sanctions against Russia and Belarus. European Commission Spokesperson Arianna Podesta 11 August statedthat EU sanctions do not impose a ban on the maintenance of payments for railway services, in particular, they do not prohibit payments for transit services between the Kaliningrad region and the rest of Russia. According to her, the decision to suspend payments was made by a specific bank, based on its risk assessment.

In mid-June, due to EU sanctions, Lithuania had already suspended the transit of some cargo to the Kaliningrad region from the rest of Russia. The country also stopped letting Russian trucks with goods through. According to the authorities of Kaliningrad, about 50% of transit came under restrictions. On July 8, Russian Foreign Ministry spokeswoman Maria Zakharova said that the European Commission and Lithuania are obliged to solve the problem with the blockade of Kaliningrad, otherwise tough measures will be taken against the republic. Transit between the Kaliningrad region and other regions of the Russian Federation was restored on July 22, however, some restrictions remained.