7% of carriers may go bankrupt in Lithuania due to Kaliningrad transit restrictions
More than 200 transport companies in Lithuania may go bankrupt due to sanctions imposed by the European Union, restricting transit traffic to the Kaliningrad Region – as reported by TASS
Experts give the following predictions, “By the end of this year, from 5 to 7 percent of small and medium-sized transport companies that did not have time to reorient themselves from the east to other directions or did not have sufficient financial resources for this, may become bankrupt,” reads a message posted on the website of the Lithuanian National Road Carriers Association Linava.
Thus, from 208 to 292 transport enterprises can stop their activities and leave the market.
On June 18th, Lithuania informed the authorities of the Kaliningrad Region that it was no longer allowing transit cargo that fell under EU sanctions through land borders and its territory. The ban applies to both railways and vehicles.
