Cargo, Construction, EU – Baltic States, Latvia, Legislation, Lithuania, Logistics, Railways

International Internet Magazine. Baltic States news & analytics Saturday, 28.11.2020, 13:24

EU court cuts EC fine for Lithuanian Railways to EUR 20 mln

BC, Vilnius, 19.11.2020.Print version
Lithuania's state-owned railway company Lietuvos Gelezinkeliai (Lithuanian Railways, LTG) abused its dominant position in the Lithuanian freight transportation market by removing a 19-kilometer railway track from Orlen Lietuva's crude refinery in Mazeikiai to Renge in Latvia in 2008, the EU General Court ruled on Wednesday, LETA/BNS informed.

The Luxembourg-based rejected the Lithuanian company's request to annul the European Commission's decision to fine it 27.873 mln euros for hindering competition in the rail freight market, but reduced the amount of the fine to 20.069 mln euros.

 

"The decision will reduce the negative impact on the company of the then management’s decision in 2008 to dismantle this important branch," LTG CEO Mantas Bartuska said in a comment.

 

"It is also very important that we have managed to restore good relations with our partners by solving this problem," he added.

 

The European Commission imposed the fine on LTG in early October 2017. The Lithuanian company paid the fine in January 2018, meaning that 7.804 mln euros will be returned to it following the court's decision. 

 

LTG rebuilt the 19-kilometer railway stretch in late 2019, which cost it around 10 mln euros. Currently, eight to ten trains a week run on the line to Latvia. 

 






Search site