Govt will not revoke ban on export of dual use goods to third countries

The preceding Government had imposed restrictions on export of dual use goods to third countries, which took effect on 1 January 2025. The move was adopted as Russia may evade sanctions and use the goods for military purposes. The new Government does not intend to lift the ban but will aim to mitigate the restrictions amid business discontent.

On Friday, Minister of the Economy and Innovation Lukas Savickas met with business representatives to discuss the issue. He said this was the key addressed at the meeting. According to him, the Government would continue with its decree and its goals, but the business community „would be granted more trust“ as restrictions must not hinder exporters of high added value goods.

Meanwhile, President of the Lithuanian Business Confederation (LVK) Andrius Romanovskis stated that the Government had made a mistake and it must be corrected. He said Lithuanian business is trading honestly and does not help Russia in any way.

President of the Lithuanian Industrialist Confederation (LPK) Vidmantas Janulevičius said that the Government would review its decision. A ban on export of dual use goods to third countries by road transport would remain and would be expanded to air transport.

Business representatives however noted that high added value Lithuanian goods are exported to Taiwan and Singapore, but new restrictions would prevent exports to those countries.

The Ministry of Foreign Affairs earlier suggested that restrictions should apply only on companies that violate sanctions.

In early December 2024, the Government led by then Prime Minister Ingrida Šimonytė expanded the national list of dual use products whose export to third countries is restricted.

These goods include liquid or gas filtering and cleaning machinery, equipment and their parts, as well as centrifuges, vehicle components such as transmission shafts, bearings, clutches and parts thereof, gearboxes, etc., as well as lorries and their parts.

The major change was a ban on the freight of goods by air across the globe with an exception of the European Union and several partner countries.

Business representatives have criticised the decision as rushed and insufficiently considered. Minister Savickas estimated that Lithuania may suffer EUR 250 million in losses due to exports ban to third countries.

The final decision on restrictions is yet to be approved by the Government in the nearest future.