Baltic Export, Baltic States – CIS, EU – Baltic States, Lithuania, Markets and Companies, Transport

Namely, to reduce energy prices, relieve the administrative burden and find new markets outside the European Union and the Commonwealth of Independent States.

Having analysed data received from 150 largest industrial companies in the country and having polled heads of 75 major transport companies, the Lithuanian Confederation of Industrialists (LPK) yesterday made some optimistic forecasts. Although due to mutual sanctions between the EU and Russia Lithuania's business will lose LTL 670 million (EUR 194 million) of the projected income and LTL 33.5 million (EUR 9.7 million) of the projected profit, the industrial giants will not incur losses this year. LPK data shows that sanctions imposed by the EU and Russia's embargo as a response to them so far have had impact on 39% of Lithuania's manufacturing sector and on 65% of Lithuania's transport sector.

Transport sector was the one that suffered the most as it is facing stagnation now. Meanwhile, food producers whose produce accounted for 44% of exports to Russia were not left helpless. Having reduced purchase price of raw material, they did not glut Lithuania's supermarkets with cheap milk and meat products. Although the volume of dairy exports to Russia decreased, total dairy exports grew by 12%. Total exports of meat products saw a smaller growth – only by 3.3%, however, the number was achieved including a 26.5% decrease in exports to Russia. Deputy President of the LPK Gediminas Rainys says that Lithuania's business did not find it too difficult to refocus so promptly because it had been already "beaten" by Russia in the past. "Companies estimated the risk of exports and found "emergency exits" quickly," he said. However, the conquest of new markets also calls for the government's help.

When asked how many new markets the Lithuanian economic diplomacy managed to open up, Rainys said that the state's economic initiatives often are at odds with economic expectations and destroy all the work that has been done by business organisations.