Lifosa cleared from EU sanctions list with the appointment of temporary administrator

On July 31, 2024, a representative from the Financial Crime Investigation Service (FNTT), Modesta Zdanauskaitė, confirmed to the Lithuanian news agency Elta that Lifosa was delisted from the EU’s sanctioned entities as of July 1. The decision, detailed in a resolution signed by FNTT deputy director Mindaugas Stravinskas on June 25, appointed UAB “Valnetas” as the temporary administrator of AB “Lifosa.” This arrangement is set to continue until May 22 of the following year.

The removal from the sanctions list marks a significant turn for Lifosa, which had its operations halted in 2022 after the EU imposed sanctions on Russia, affecting the company’s financial and operational capabilities. The phosphorus fertilizer factory in Kėdainiai, owned by Lifosa, had been inactive since April 10, 2022, following the freezing of its accounts by the EU.

Lifosa is owned by a Swiss-registered EuroChem Group that is majorly owned by the Cyprus company AIM Capital, which was previously affiliated with Russian oligarch Andrey Melnichenko. Melnichenko and his wife, Aleksandra, remain on the EU’s list of sanctioned individuals.

The future operational changes for Lifosa following this administrative shift remain unclear, as reported by the local news portal “Rinkos aištė.” However, earlier in May 2024, Lifosa had signaled intentions to restart production, and by the beginning of June, it had begun to resume its production activities, indicating a possible return to normal operations.