Baltic States – CIS, Lithuania, Railways, Transport

The decision to check all companies based outside the European Union (EU) and NATO was taken by the company's new leadership after reported that a shareholder of the company's partners, Russia's Transmashholding, was also the operator of the Russian military industry concern Kalashnikov.

"Dec. 29 decree by LG CEO stipulates that from now on the company will check all companies that are based in countries that are not members of the EU and NATO that participate in its tenders," told LG told.

LG several years ago, before the 2014 annexation of Crimea by Russia, signed a memorandum of cooperation with Russia's Transmashholding, whose shareholders include Andrei  Bokarev, who is also a co-owner of the Kalashnikov Group. The Russian concern intended to cooperate with LG's subsidiary, Vilniaus Lokomotyvu Remonto Depas.

Following the Russian campaign in Ukraine in 2014, Kalashnikov was included into the sanction list of the EU and the US, and Ukraine has blacklisted the Transmashholding concern that operates a factory in Luhansk that is currently controlled by separatists.