VILNIUS — Lithuanian Railways (LTG) said it will stop transporting oil products from Russian energy giant Lukoil to the Kaliningrad region in compliance with new US and UK sanctions targeting Russia’s largest oil companies.
The company said it would fully adhere to the sanctions regime imposed by Washington and London, which restrict the sales and transport of oil from Lukoil and Rosneft. President Donald Trump announced the sanctions on October 22.
Last year, LTG transported a total of 371,000 tons of oil products to the Russian exclave, of which 345,000 tons were Lukoil shipments. No Rosneft products were moved through Lithuania either last year or this year. This year, LTG carried 194,000 tons of Lukoil oil to and from Kaliningrad.
“None of the LTG Group companies has direct contractual relations with Lukoil or Rosneft. Lukoil products are shipped in transit by forwarding agents whose identities we cannot disclose due to contractual obligations,” the company told LRT.
The sanctions, set to take effect on November 21, will freeze the assets of Rosneft and Lukoil in the United States and ban American entities from conducting transactions with them. The measures are aimed at limiting the Kremlin’s ability to finance its war in Ukraine.
The restrictions will also extend to third parties, including foreign banks that facilitate financial transactions for the sanctioned firms. The United Kingdom introduced similar sanctions in mid-October.
LTG said it would follow the guidance of international partners to minimize business risks.
“After the transitional period for completing existing contracts ends, LTG will not carry out transport operations involving companies sanctioned by the US or UK, including Lukoil, Rosneft or related entities,” the company said.
LTG has informed Lithuania’s Ministry of Transport and Communications and the Ministry of Foreign Affairs about the potential impact of the sanctions on transit operations. Both ministries oversee the implementation of international sanctions.
Under European Union rules introduced in December 2022, the transport of Russian oil products through EU territory is banned except via pipelines. However, Lithuania applies an exemption allowing rail transit of essential goods to Kaliningrad, Russia’s western exclave.
lthough EU sanctions cover Russian oil, Lukoil has continued to operate in parts of Europe because it is nominally a private company, unlike state-controlled Rosneft. In response to the new US measures, Lukoil announced it would sell its foreign subsidiaries to the Swiss oil trader Gunvor.
The U.S. Treasury Department estimates that the new sanctions could cut the Kremlin’s oil and gas revenues by up to 30 percent.
Russia’s Kaliningrad would fall quickly in a war with NATO, U.S. general says
In a direct conflict with Russia, NATO could capture Kaliningrad Oblast “in a time frame that is unheard of” if necessary, Allied Land Commander Gen. Chris Donahue said.
According to a report by Defense News, Donahue made the comments at the LandEuro conference Wiesbaden, Germany. The conference is run in association with the U.S. Army.
Donahue said the enclave is roughly 75 kilometers wide on the Lithuanian side and is surrounded by NATO countries. Allied forces can “take that down from the ground in a timeframe that is unheard of and faster than we’ve ever been able to do,” he said.
NATO has already begun implementing its Eastern Flank Containment strategy, Donahue added. The plan is designed to reinforce the Alliance’s ground capabilities in Europe and further integrate its defense industrial base.
Under the program, NATO allies are accelerating work on standardized digital systems, unified launchers, and a cloud-based coordination architecture to better deter threats from Russia.
On July 15, Ukrainian Defense Intelligence chief Kyrylo Budanov briefed U.S. Special Envoy Keith Kellogg on intelligence that Russia is preparing to attack NATO in the coming years. The briefing included details of the current operational situation, an assessment of Russia’s plans through 2036, and information on Kremlin preparations for an armed conflict with NATO members.
On July 6, NATO Secretary General Mark Rutte warned that Russia could attack Estonia within five to seven years unless members increase their defense spending.
In March, German intelligence reported that Russian dictator Vladimir Putin is preparing for a large-scale war with NATO by the end of the decade.
By LRT and The New Voice of Ukraine
