JSC Belaruskali, a company under EU sanctions, has filed a full statement of claim against the Republic of Lithuania for its “illegal” actions in international investment arbitration.
The company claims that these actions have violated their rights as a foreign investor under the Agreement between the Governments of Belarus and Lithuania on Investment Promotion and Protection.
Belaruskali is a major producer and exporter of potash fertilizers, accounting for a fifth of global production according to the International Fertilizer Association. Potash fertilizers from Belaruskali are marketed by Belarusian Potash Company, a subsidiary.
At the end of 2021, Lithuania decided to terminate the contract for the transportation of Belarusian potassium by rail. This was preceded by a decision of the Lithuanian government commission, which considered the Lithuanian Railway agreement with Belaruskali to be a threat to the country’s security.
Since February 1, 2022, transportation of fertilizers through Lithuania has been halted. In response, Belarusian authorities have banned the transit of petroleum products and fertilizers by rail through Lithuania.
In 2023, the European Union, Canada, and Switzerland imposed sanctions on Belaruskali and its CEO, Ivan Golovaty. The company and CEO challenged the sanctions at the European Court of Justice. However, in September 2019, the court rejected their claims.
