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Lithuania extends restrictions on trade with Kaliningrad despite Russian warning

Signage is seen at the border railway station in Kibartai, Lithuania, June 21, 2022. REUTERS/Ints Kalnins/File photo

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VILNIUS, July 11 (Reuters) – Lithuania on Monday extended restrictions on trade through its territory to Russia’s Baltic exclave of Kaliningrad as the phase-in of previously announced European Union sanctions against Moscow over its incursion into Ukraine took effect.

Other goods banned from Monday morning include concrete, wood, alcohol and alcohol-based industrial chemicals, a Lithuanian customs spokesman said.

Russia warned Lithuania and the European Union on Friday that it may take “harsh measures” against them if the transit of some goods to and from Kaliningrad is not resumed “in the coming days”. Read more

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On Monday, Kaliningrad’s regional governor proposed a total ban on land movement of goods between Russia and the three Baltic EU member states of Lithuania, Latvia and Estonia to force them to use Kaliningrad’s ports. Read more

“This will provide activities to (our) sea carriers and give work to the Kaliningrad ports, which were badly affected by the EU restrictions,” said Governor Anton Alikhanov.

EU trade restrictions were upgraded as governments, markets and companies worry that Russia may choose to extend the shutdown of the largest single pipeline carrying Russian gas to Germany beyond a planned 10-day maintenance period. Read more

SOLUTION TEST

Kaliningrad borders NATO and EU member states Lithuania and Poland and relies on railways and roads through Lithuania for most goods. The coastal territory has been cut off from some cargo transport from mainland Russia since June 17 under the EU sanctions regime.

Goods that fall into humanitarian or essential categories, such as food, are exempt from the sanctions.

The row over Kaliningrad’s isolation is testing Europe’s resolve to enforce sanctions amid fears of an escalating confrontation with Russia after other restrictions caused Moscow to default on its debt. Read more

EU representatives, with the support of Germany, sought in late June a quick compromise to resolve the impasse. However, sources told Reuters that Lithuania, once ruled by Moscow under the old Soviet Union, had serious reservations about what could be seen as a concession to the Kremlin.

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Reporting by Andrews Sitas in Vilnius, editing by Anna Ringström and Mark Heinrich

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