Vilnius, Jan 3 Lithuania's new government will seek to soften the ban on export of dual-use goods put in place by the previous cabinet, the Baltic News Service (BNS) reported on Friday.
At a press conference on Friday, Lithuanian Economy and Innovation Minister Lukas Savickas noted that some of the expanded measures had been taken without consulting businesses first.
"I have not heard from our business partners that anything has been negotiated with any of the associations present at the table," Savickas said.
The minister stressed that the previous sanctions would remain in place, but he added, "We hope that together with the government, we will be able to adjust the decision, to find a solution that is also effective in terms of sanctions."
Simonas Cerniauskas, Director of Lithuanian Digital Technology Association Infobalt, said that too strict bans could discourage foreign companies from investing in Lithuania.
"We are not talking about limiting sanctions, we want to keep them, but it has to be done sensibly," he said, Xinhua news agency reported.
Savickas estimated that the current restrictions would result in a loss of over 250 million euros (257 million US dollars) a year in revenue for businesses.
SEB Bank economist Tadas Povilauskas wrote in a Facebook post that in the first 10 months of 2024, exports from Lithuania of the sanctioned goods amounted to 720 million euros, and exports of such goods of Lithuanian origin alone amounted to 477 million euros.
On Tuesday, the Lithuanian Agriculture Minister Ignas Hofmanas had said that the country would not support the ratification of the Free Trade Agreement between the European Union (EU) and the South American trade bloc Mercosur.
Hofmanas said the Rural Affairs Committee of the Lithuanian parliament, the Seimas, has adopted this decision.
"The European Commission has promised a detailed explanation of the agreement, which we'd like to wait for, but for now, this is our stance," Hofmanas told local media LRT TV on Monday.
In mid-December, the parliamentary committee proposed that the government oppose the agreement in the EU Council and align with other member states blocking it, citing concerns from Lithuanian farmers about unfair competition.
"Our agricultural sector is especially affected when it comes to meat - poultry and beef. Since we grow most of our agricultural produce and export a significant share, I don't think this agreement offers us any opportunity," Hofmanas said.
Vytenis Tomkus, a former deputy agriculture minister, previously said the agreement could benefit Lithuania economically by boosting exports of agricultural and food products.
However, Lithuanian farmers' organisations warn of significant risks from Mercosur bloc products entering the EU market, highlighting potential negative effects on Lithuania's agricultural sector, environmental goals, and food safety standards.
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