EU – Baltic States, Financial Services, Latvia, Legislation, Lithuania, Railways, Transport

Vaidotas Rukas, a member of the board at the Lithuanian Investors Association, said that it would make more sense for the railway company to choose a bank security.

"I believe a security is a cheaper option than paying the fine. I am not familiar with the fees for bank securities but this will definitely be cheaper than taking the whole sum at once," he told BNS.

According to information available to BNS Lithuania, Lietuvos Gelezinkeliai must pay the fine or provide the security by Jan. 7 of 2018. Should the company change its mind and forgo the appeal, it would have the only option of paying the fine.

In Rukas' words, the 27.87-million-euro fine should be reflected in the company's financial reports for the fourth quarter of this year.

LG spokesman Mantas Dubauskas told BNS that the company had not yet chosen between paying the fine or taking a security. In his words, the security could be provided by a bank registered in the European Union that would have an AA rating. In Lithuania, the requirements are fulfilled by the largest Nordic banks, namely, SEB, Swedbank and Danske.

On Wednesday, Lietuvos Gelezinkeliai's CEO Mantas Bartuska stated that the company would appeal against the Oct. 2 decision to impose the fine for the 2008 removal of a railway stretch between Mazeikiai, northern Lithuania, and Renge, Latvia.

The EC finding can be appealed with the Court of Justice of the European Union.