Belarusian fertilizer producer demands multibillion-dollar compensation from Lithuania

Belaruskali, a Belarusian producer of potash fertilizers, demanded $12 billion in compensation from Lithuania. This is stated in the message of the Permanent Court of Arbitration.

"In the statement of claim, the plaintiff demands to recover damages from the Republic of Lithuania in the amount of $ 12,090,167,971 (as of November 27, 2024)," the statement said.

The lawsuit itself was filed on December 2, 2024. The dispute between the parties is considered according to the rules of UNCITRAL (UN Commission on International Trade Law) 1976. For this purpose, a special (ad hoc) arbitration consisting of three arbitrators was formed. One of them is appointed by the plaintiff, the other by the defendant, and the third is chosen by the decision of the arbitrators. The venue will be Geneva.

It should be reminded that Belaruskali started arbitration proceedings against Lithuania after Vilnius invalidated the cargo transportation agreement between the state-controlled railway company Lietuvos gelezinkeliai and the Belarusian manufacturer in January 2022. Since February 1 of the same year, the transportation of potash fertilizers through Lithuania has been stopped. According to Belaruskali CEO Andrei Rybakov, the appeal was filed in connection with "illegal actions of Lithuania, as a result of which the rights of the enterprise as a foreign investor were violated." At the same time, earlier the court of general jurisdiction of the European Union had already rejected Belaruskali's claim to challenge the sanctions, as well as the Lithuanian courts, which recognized the actions of the country's departments as legitimate.