Belaruskali demands €1bn from Lithuania over fertilizer transportation ban

The Belarusian state-owned potash manufacturer Belaruskali has initiated investment arbitration proceedings against Lithuania, the Baltic state’s national broadcaster, LRT, reported on Tuesday.

Belaruskali is reportedly demanding €1bn in compensation for the losses it says it incurred after Lithuania prohibited it from transporting its products through the country.

Vilnius ordered the state-owned railway company Lietuvos Geležinkeliai to terminate its long-standing contract with the Belarusian manufacturer in February of last year, arguing that the arrangement undermined national security.

Belaruskali had been exporting fertilizers via the Lithuanian port of Klaipėda for over ten years. The transit agreement was not due to expire.

Lithuanian officials have confirmed that a notice of arbitration has been filed, but have not offered any further comment on the case.