US sanctions against Belarus, introduced on Monday, on August 9, actually put a cross on the transit of Belarusian potash fertilizers through Lithuanian ports from December of the current year. This was stated by the Minister of Transport and Communications of the country Marius Skodis, reports Portal 15 min.
He explained that in theory, restrictive measures concern only American companies and settlements in dollars, but in practice, European banks distribute them to all calculations and refuse to accept payments in euros.
“I can firmly declare that since December, when sanctions enter into force, Belarusian fertilizers will stop moving through Lithuania,” said Skodis.
At the same time, according to the minister, the effect will be visible before the winter, because many companies will prepare for sanctions in advance. To this, they will push financial institutions that nervously perceive cooperation with potential violators of the sanctuction regime. Including they can close the settlement accounts.
Skodis indicated that fertilizers make up a third of the goods following Lithuanian railways. Of these, 10 percent are transported to the European Union, and the rest – to China, India, Brazil and other countries. The minister admitted that the losses for national railways will be very serious, and now the government is looking for ways to compensate them.
In the same way, the consequences of American sanctions described the former senior adviser to the Sannery Agency OFAC in the Ministry of Finance of the United States Brian O’Toule. He explained that the elected pressure format on Belaruskali foreign companies perceive as secondary sanctions. And this means that everyone who wants to buy Belarusian fertilizers may be in the sanctions list.
Before that Lithuania threatened Minsk to independently break the transit of fertilizers due to the migration crisis arising in recent weeks. In addition, the sanctions against the supply of potassium introduced the European Union, but these measures touched a relatively small part of exports.
For Belarus, the export of potash fertilizers is critical, since this is the main source of currency in the country. Without it, Minsk will not be able to serve a significant public debt, almost completely denominated in foreign currency. To solve this problem, the country’s power gave themselves the right to confiscate the currency from enterprises, and also asked another loan from Russia.