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LITHUANIA DAILY NEWS BULLETIN, June 27, 2025

Jul 24 2025

LITHUANIA DAILY NEWS BULLETIN


IN THIS ISSUE:

  1. Lithuania records no illegal border crossings from Belarus
  2. EU's new Russia sanctions package among strongest yet – Lithuanian president (expands)
  3. Lithuanian president urges EU leaders to show resolve on 5 pct of GDP defense goal by 2030
  4. Europe must use its influence on Israel to end 'humanitarian disaster' in Gaza – Nauseda 
  5. Lithuanian Customs destroyed almost 9 mln smuggled cigarettes in H1
  6. Lithuanian PM confirms visit to ILTE but denies discussing loan for his company
  7. Lithuania's CNSD questions lawfulness of military intelligence chief's dismissal
  8. Lithuania's Naresta, Rheinmetall to partake in Rudininkai military campus' 2nd stage (media)
  9. Lithuanian president signs tax, pension reform chnages into law
  10. Belarus will take part in UEFA Futsal Championship, won't play in Lithuania – body

Lithuania records no illegal border crossings from Belarus

VILNIUS, Jun 27, BNS – Lithuanian border guards recorded no attempts to cross into the country from Belarus illegally for the fifth day in a row on Thursday, the State Border Guard Service (SBGS) said on Friday morning.

Latvia reported 34 illegal border crossing attempts on Thursday. Poland denied entry to 120 irregular migrants on Wednesday, according to the latest available information.

Lithuania has barred 872 irregular migrants from entering from Belarus at non-designated places so far this year, after turning away 1,002 in 2024.

The influx of irregular migrants into the EU's eastern member states from Belarus began in 2021 and is blamed by the West on the Minsk regime.

 

 

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EU's new Russia sanctions package among strongest yet – Lithuanian president (expands)

(adds paras 5-6)

VILNIUS, Jun 27, BNS – The European Union's proposed 18th package of sanctions against Russia would be one of the strongest the bloc has imposed on the Kremlin, which continues to wage war in Ukraine, in more than a year and a half, Lithuanian President Gitanas Nauseda said on Thursday.

"It covers energy, banks and the so-called shadow fleet. It could really deal another blow to Russia's economy," Nauseda told reporters in Brussels ahead of the European Council meeting.

"I truly hope it will be serious and tough, because, if I may put it this way, it's one of the strongest packages I can remember from the past year and a half," he added.

The new package aims to curb Russia's energy exports by lowering the price cap on oil sold by the country and to further tighten restrictions on its banks.

In a video comment from Brussels on Thursday evening, Nausėda said it is important that the fresh sanctions have an impact, as Russia continues to show no interest in peace talks and is pressing ahead with its summer offensive.

"While we're here talking, Russia is trying to seize even more Ukrainian territory so it can negotiate from a position of strength. We can't allow that. As I said today, from what I recall, the 18th sanctions package is one of the most serious yet, and we must implement it fully, without exceptions," he added. 

In early June, the European Commission proposed lowering the price cap on Russian oil exports to 45 dollars (39 euros) per barrel, from the current 60 US dollars (52.5 euros).

Nauseda said earlier on Thursday that rising oil prices, driven by the conflict between Iran and Israel, could make it harder for EU leaders to reach a deal on the cap.

"Prices are going up and, unfortunately, with tensions running high, they're bound to keep rising. That makes our task more difficult, but we'll still pursue it," he said.

The president added that higher oil prices benefit Russia.

"The biggest problem is that, despite Iran being an ally of Russia and Russia formally expressing regret over what's happening, on the other hand, it's quietly rubbing its hands, because the key factor is oil prices, which are fueling the war in Ukraine and feeding Russia's economy," he said. 

 

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Lithuanian president urges EU leaders to show resolve on 5 pct of GDP defense goal by 2030

VILNIUS, Jun 27, BNS – Lithuanian President Gitanas Nauseda on Thursday urged European Union leaders to take "very serious steps" over the next five years toward meeting a defense spending target of 5 percent of GDP, following a pledge by NATO member states at this week's summit in The Hague to reach that level by 2035. 

"Today, we talked a lot about how the NATO summit provided excellent guidelines, but it doesn't guarantee we'll reach that 5 percent smoothly year after year – especially if political will is lacking," Nauseda said in a video comment from the European Council meeting in Brussels.

The president said that in his speech at the meeting, he pointed out that the defense funding increase could be split into two periods – 2025–2030 and 2030–2035 – and urged Europe to take the lead in the earlier phase. 

"It's obvious to everyone that the initial period is critically important. It would be highly counterproductive if we – or some countries, and I don't think Lithuania will be among them – acted during the first period like a student who doesn't study during the semester and starts cramming only during the exam session," the president said in the comment.

"I believe we have to take very serious steps early on to demonstrate the seriousness of the NATO summit's commitment, and this should primarily be done by Europe, by EU member states, before moving into the so-called second period," he added.

Nauseda said Lithuania, along with "a significant number of countries," had supported setting a five-year deadline to reach the 5 percent target.

"Due to opposition from some countries, this could not be achieved, but despite that, we must make an effort to ensure that states take responsibility for Europe's security here and now," he said.

 

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Europe must use its influence on Israel to end 'humanitarian disaster' in Gaza – Nauseda 

VILNIUS, Jun 27, BNS – Europe must use its influence on Israel to stop the "humanitarian disaster" in the Gaza Strip, Lithuanian President Gitanas Nauseda said on Thursday. 

"We discussed the humanitarian crisis in Gaza, and we want this humanitarian disaster to end, with humanitarian corridors opened so that children and women, that is, people who have nothing to do with the fighting, don't suffer," he said in a video comment from the European Council meeting in Brussels.

European Union (EU) leaders were presented with a report by Kaja Kallas, the bloc's foreign policy chief, showing that children make up 44 percent of the casualties in Gaza, according to the president.

"Not to mention the condition these children arrive in, as many countries are trying to bring them to our hospitals. (...) It's heartbreaking for a normal person to hear this, and it can't continue," the Lithuanian leader said in the comment.

"On this issue, Europe, unlike in the case of Russia, does have influence over Israel and must use it, whether through bilateral contacts and talks or by acting as a united EU force," he added.

Nauseda said that decisions on the matter are likely to be postponed until the EU Foreign Affairs Council meeting in mid-July.

"But I hope that by then – at least that was our agreement – the High Representative (Kallas) and her office will have prepared recommendations and measures we can take," he said.

EU countries remain divided and lack a common position on criticizing Israel's actions.

In late May, Nauseda said that Israel's military operations in Gaza violate humanitarian law but emphasized that criticism of the Jewish state should come through cooperation, not isolation.

While Lithuania has taken a moderate stance, the president said "you'd have to be completely blind" not to see the humanitarian law violations in Gaza.

 

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Lithuanian Customs destroyed almost 9 mln smuggled cigarettes in H1

VILNIUS, Jun 27, BNS – Lithuania's Customs destroyed 8,760,712 pieces of smuggled cigarettes in the first half of this year, the Customs Department said on Friday, adding that just over 38 kilograms of tobacco and more than 1,500 liters of alcohol were also destroyed during the period. 

According to the department, the destruction of tobacco products is carried out through a combination of organizational and technological measures. In particular, they are crushed, cut, broken otherwise rendered completely unfit for their immediate use.

After destruction, the resulting waste is mixed with other bio-chemical waste or incinerated. Providers of these services undertake to render the tobacco products irreversibly unfit for consumption and to use the final product in a manner that is safe for the environment and public health.

Alcohol, according to the Department, is destroyed by crushing.

The department notes that the destruction of smuggled goods detained at customs is only carried out after a court ruling in a criminal or administrative case.

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Lithuanian PM confirms visit to ILTE but denies discussing loan for his company

VILNIUS, Jun 27, BNS – Lithuanian Prime Minister Gintautas Paluckas confirmed on Friday that he visited the national development bank ILTE last October but denied discussing a loan for Garnis, a company he partly owns.  

"I'm glad ILTE has confirmed and explained the circumstances and what we talked about, leaving no room for speculation. It's best when the facts come from those who have them," the leader of the Lithuanian Social Democratic Party (LSDP) told reporters. 

Paluckas said he visited ILTE at the invitation of one of the bank's executives, adding that they discussed "general corporate financing issues."

The Social Democrat noted that the visit took place during the previous parliamentary term. 

"At that time, I was deputy chairman of the Seimas Committee on Economics, and if I'm not mistaken, the meeting was held at the invitation of an ILTE executive," he said. 

Paluckas insisted that his visit to ILTE had nothing to do with a loan for Garnis, in which he holds a 49 percent stake.

"ILTE has already provided information that no loans or specific companies were discussed. It was a general discussion about the country's investment climate and the principles and information on accessing capital. That's all," he said.

ILTE confirmed that Gintautas Paluckas visited its headquarters in early October last year.

"The Social Democrats' representative Gintautas Paluckas visited the ILTE office once, on October 2, 2024. The member of the Seimas was interested only in general information about ILTE's activities and the challenges Lithuanian companies face in attracting financing," ILTE said in a comment to BNS.

The investigative journalism center Siena (Wall) and Laisves TV reported in late May that Garnis, which plans to produce battery systems, received a 200,000-euro soft loan from ILTE after Paluckas had already taken office as prime minister. 

The politician also owns 51 percent of another company, Emus, which would not have qualified for the loan because it has been operating for too long. Garnis would not have been eligible either if it had formally been part of the same company group as Emus.

This has sparked public speculation that Garnis could have been created as a front to obtain the loan and doubts about whether the company is using the funds as intended. 

The prime minister has denied all accusations of improper conduct, saying he does not take part in Garnis' day-to-day operations and has avoided any conflicts of interest.

The Financial Crime Investigation Service (FCIS) is conducting a pre-trial investigation into possible fraud involving Garnis, a manufacturer of modular energy storage systems.

The Chief Official Ethics Commission is looking into whether Paluckas placed himself in a conflict of interest when making decisions related to ILTE.

 

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Lithuania's CNSD questions lawfulness of military intelligence chief's dismissal

VILNIUS, Jun 27, BNS – The Lithuanian Seimas Committee on National Security and Defense on Friday questioned the lawfulness of the dismissal of Colonel Elegijus Paulavicius as head of the country's Second Investigation Department under the Defense Ministry, Lithuania's military intelligence service, and decided to ask the Defense Ministry for all related documents.

"We see procedural violations, possibly even legal violations, and the provisions of the law were ignored. The minister is in a difficult situation," said Giedrimas Jeglinskas, the committee chair, said after its meeting.

"We will ask the Defense Ministry to provide all the documents, including when the investigation was opened and a copy of the order, whether the colonel was informed that he was being investigated," the politician said, adding that the Intelligence Ombudspersons' Office will also be involved in the process.

"I think that what has happened is already damaging military intelligence and counter-intelligence," Jeglinskas said.

As BNS reporter earlier, Defense Minister Dovile Sakaliene on Wednesday moved Paulavicius to the Defense Ministry's temporary reserve of professional military service personnel, even though his term was due to end in August.

On Thursday, the minister told reporters that she was forced to take this step because of "very serious irregularities" as Paulavicius is under investigation for the treatment of his subordinates, adding that he cannot continue working in this position.

Paulavicius has said he's not aware of the reasons for his dismissal.

May be reinstated

Jelginskas says the defense minister's order to dismiss Paulavicius could be revoked.

"If it is confirmed that perhaps the person was not informed that an investigation had been opened against him, that the investigation was opened after his suspension, then the logical decision (...) is to cancel the minister's order and reinstate the person," Jeglinskas said. "If it becomes clear that in terms of procedures it was done unlawfully, our committee's recommendation would be to rescind the minister's order."

LNK News reported on Thursday that Paulavicius was removed before the investigation into the working atmosphere at the SID was launched. Jeglinskas says that in such a case Paulavicius would be reinstated for a few months before the end of his term of office.

Different versions, non-convincing complaints

According to Jeglinskas, Paulavicius' transfer to the reserve is also raising questions.

"We have to look at the letter of the law and there may be violations there. These ere are our observations after listening to both sides," the CNSD chair said.

In his words, decisions regarding the military intelligence chief's dismissal should be made by the Defense Ministry's inspector general and the intelligence ombudspersons.

Jeglinskas also points out that Paulavicius and Sakaliene have provided "quite different" versions. "Our goal is that military intelligence continues to function and that the reputation of the army should not be damaged," the MP said.

According to the CNSD chair, the staff complaints Sakaliene referred to are similar to those received by "every manager who has headed any institution".

"I wouldn't say that these were convincing arguments for those complaints. (...) The committee believes these complaints are not very convincing," Jeglinskas pointed out.

Colonel Paulavicius was appointed head of military intelligence in August 2020. His term of office would have expired in mid-August.

The Second Investigation Department is one of Lithuania's two intelligence services and is responsible for ensuring and strengthening national security in the defense sector.

By Paulius Perminas, Vilmantas Venckūnas

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Lithuania's Naresta, Rheinmetall to partake in Rudininkai military campus' 2nd stage (media)

VILNIUS, Jun 27, BNS – Lithuanian construction company Naresta plans to participate in the second-stage of the Rudnininkai military campus project together with German defense tech leader Rheinmetall, the vz.lt business news website reports on Friday. 

Naresta CEO Tadas Grincevicius told the website that the two companies had signed a preliminary cooperation agreement under which Rheinmetall could participate in the project as a contractor and site supervisor.

Naresta informed about the ongoing discussions with the German company in a Facebook post.

"The visit (to Rheinmetall Project Solutions' plant in Kiel - BNS) provided valuable insights into Rheinmetall's competences and project implementation capabilities, and allowed us to agree on the main aspects of cooperation," the company wrote. 

In early June, Naresta told BNS that it and its partners had applied to participate in the second stage of the Rudninkai military campus tender organized by the Defense Ministry. According to the company, it is seeking to participate in two of the three stages of the project. 

The Rudninkai project is being carried out through a public private partnership (PPP) and split into three stages, reducing the risks for the state. The cost of construction of one stage alone will amount to around 400 million euros, and the state's total commitments, according to the Defense Ministry, could amount to around 1.8 billion euros, including VAT.

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Lithuanian president signs tax, pension reform chnages into law

VILNIUS, Jun 27, BNS – Lithuanian President Gitanas Nauseda has signed amendments to the tax and second pillar pension accumulation laws, adopted by the Seimas.

Both reforms will contribute to increased defense funding and social justice, the presidential office said on Friday.

"Despite communication errors, the ruling majority has taken an important step towards fairer taxes. It is important that the totality of the changes does not stifle the Lithuanian economy," Nauseda said in a statement.

The president also signed amendments to the Law on the Defense Fund, adopted on Thursday, which provide for the replenishment of the fund with revenues from new or amended taxes that will enter into force from 2026.

This week and last week, Lithuanian lawmakers adopted the long-debated and controversial amendments to key taxes. On Thursday, changes to the personal income and property taxes were adopted, while last Tuesday the parliament introduced a "sugar" tax, insurance taxes, a higher corporate income tax rate, and changes to lower VAT rates.

Lithuania's Seimas on Thursday approved the government's proposed reform of the second-pillar pension accumulation system, which significantly liberalizes the system. Under the new rules, people will no longer be automatically included into the pension accumulation system, will be allowed to withdraw from the system completely, withdraw 25 percent of the accumulated funds once, or the entire amount in case of a serious illness, and those who will continue accumulating their pension will keep the 1.5 percent state contribution.

"The laws introducing changes to the pension accumulation system remove coercion towards the population. Now, those who save for an additional pension, which, by the way, is highly encouraged, will have even more favorable and flexible conditions to do so," Nauseda said.

GDP growth in Lithuania is estimated to slow by about 0.3 percentage points next year once the changes to the key taxes and also some new taxes adopted by the Seimas come into force, the government says. Prime Minister Gintautas Paluckas says this is a small impact that will not harm Lithuania's ability to compete with other countries in the region.

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Belarus will take part in UEFA Futsal Championship, won't play in Lithuania – body

VILNIUS, Jun 27, BNS - Belarus will take part in next year's UEFA Futsal Championship, co-hosted by Lithuania, but will play only in Slovenia, the Lithuanian Football Federation said on Friday.

The UEFA Executive Committee confirmed on Friday that the 2026 UEFA Futsal Championship will be hosted – Lithuania, Latvia Slovenia. According to UEFA's updated tournament structure, one group will play in Lithuania, one group in Latvia and two groups in Slovenia.

In addition, Lithuania and Latvia will host one quarter-final each, while two quarter-finals will be held in Slovenia. The latter will also host the semi-finals, the final and the third place game.

According to the agreement, Ukraine will play its group matches in Lithuania or Latvia, while the Belarusians will play only in Slovenia, the LFF said.

According to the original plan, the championship was to be hosted by Lithuania and Latvia, but after the Belarusian team qualified for the final round, the two countries told UEFA they would not allow Belarusian footballers to enter the tournament and would not play against them.

LFF President Edgars Stankeviius says that this raised the risk that the final stage of the championship might not take place in Lithuania or Latvia at all, but eventually Lithuania remained as one of the hosting countries and "stand up to our values in a proper and loud way'.

As BNS previously reported, Latvia's sports law stipulates that Latvian teams are banned from playing Russian and Belarusian teams if they are playing under their own flag or as neutrals.

There is no such prohibition in Lithuanian law, but the LFF recommends not to play against Belarusian athletes because of the Minsk regime's support for Russia.

Stankevicius also believes that a ban on Belarusian athletes coming to Lithuania should be enshrined in legislation.

The 2026 UEFA Futsal Championship will take place from January 18 until February 8.

 

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