Vilnius, July 14 (ELTA) – Amid public speculations that amendments to the real estate tax passed by the coalition may contradict constitutional requirements, parliamentary opposition does not rule out referring the matter to the Constitutional Court.

The updated law now states that a person’s primary housing will be exempt from the tax. However, former president of the Constitutional Court, Egidijus Kūris, last week said that the law inadequately defines what is “primary housing” and may breach the constitutional freedom to choose the place of residence.

MP Gintarė Skaistė, from the opposition’s Homeland Union-Lithuanian Christian Democrat party (TS-LKD), agrees that the amendments have multiple shortcomings. According to her, in summer the law be examined in depth, lawyers will provide their insights and it will be then decided whether to address the Constitutional Court or not.

“I cannot say for sure today that politicians will address the Constitutional Court,” she said.

Liberal Movement’s MP Eugenijus Gentvilas added that real estate tax amendments had not been harmonised with interested parties, which in itself is a violation of the Law on Legislative Framework.

As reported, the Social Democratic-led coalition passed real estate tax amendments in June, which stipulate that primary housing will be subject to the tax only if its value exceeds EUR 450,000. Whereas an owner’s all other properties will be taxed if their value exceeds EUR 50,000. Until now, residential real estate was taxed if was valued over EUR 150,000.

New tax regulations will take effect starting 2026.

Vilnius, July 14 (ELTA) – On Monday, 14 July, non-governmental organisation Blue/Yellow started a Dronathon, a two-month crowdfunding campaign aimed to collect EUR 1 million that will be used to buy drones for Ukraine.

According to the organisers, the funds will be used for various drones, their control equipment and accessories. 

Blue/Yellow co-founder Jonas Ohman notes that every day Russia attacks Ukrainian cities with hundreds of unmanned aerial vehicles (UAVs) and terrorises civilians.

He says drones are relatively inexpensive and highly effective, while more than two thirds of all requests for aid received from the Ukrainian troops at the frontlines are related to drones. Therefore, this summer the goal is to focus on drones.

The crowdfunding campaign is scheduled to finish on 14 September.

Since the start of the Russian invasion of Ukraine in 2022, Blue/Yellow has purchased and donated to Ukraine over 5,000 various drones and their accessories. Lithuanians have donated more than EUR 100 million to Ukraine through the Blue/Yellow organisation since its founding in 2014.

Vilnius, July 14 (ELTA) – Fifty four percent of residents of the Baltic States are concerned that US tariffs on European Union exports may affect their work, wages and living expenses, shows a poll published by Citadele bank.

In Lithuania, 7 percent of respondents said they are greatly worried about this, while 43 percent are slightly worried about the negative consequences.

In Latvia, 9 percent of residents are very worried about tariffs, while 47 percent are slightly worried. Whereas in Estonia the figures stand at 12 and 46 percent respectively.

Aleksandras Izgorodinas, economist at Citadele bank, notes that Estonians are the most concerned about US tariffs, whereas Lithuanians are the least concerned, and this reflects the overall economic situation in the Baltic region, with the Lithuanian economy currently being in the lead and Estonia’s being the weakest of the three.

According to the economist, the impact of import tariffs on the Baltic countries will be limited because small- and medium-sized enterprises dominate in the region, which can operate stably even if there is stagnation in the euro area. Moreover, as of 2026 the negative effects of tariffs should be offset by investments in defence infrastructure promoted by Germany.

Despite potential challenges, economies of all three Baltic countries are projected to grow. Citadele forecasts that Lithuania’s GDP will grow by 2.5 percent, Estonia’s by 1.5 percent and Latvia’s by 1.4 percent.

Average wage in Lithuania is expected to increase by 7 percent in 2025 and 6.7 percent in 2026. In Latvia, wages should increase by 6 percent this year and 6.2 percent next year, while in Estonia they should increase by 5.3 percent this year and 5.6 percent next year.

The poll was conducted online in May 2025 by the pollster Norstat. At least 1,000 residents aged between 18 and 74 were interviewed in each of the three countries.

Vilnius, July 12 (ELTA) – On Saturday, the Council of the Liberal Movement convened and approved candidates for the upcoming leadership election. The list of candidates was submitted earlier in July.

The party’s new chairperson will be elected this autumn. Incumbent Chairwoman Viktorija Čmilytė-Nielsen, MP Simonas Kairys and Plungė Mayor Audrius Klišonis will participate in the race.

Branches of the party had also nominated MPs Eugenijus Gentvilas and Simonas Gentvilas but they decided not to contend and endorsed Čmilytė-Nielsen instead.

The first round of the Liberal Movement’s leadership election will be held on 8-12 September. If there is no clear winner, then the second round will be organised on 18-20 September. All members of the party have the right to vote online.

The new chairperson, elected for a period of two years, is planned to be approved at the party’s congress on 20 September.

Čmilytė-Nielsen was elected the chairwoman of the Liberal Movement in 2019 and was re-elected twice.

Vilnius, July 14 (ELTA) – On Monday, the Bank of Lithuania published the balance of payments for May 2025, which shows that the surplus on the current account balance (CAB) was down by 3.8% compared to April and amounted to €132.5 million. It was mainly underpinned by an increase in primary income and foreign trade deficits, said the central bank.

The primary income deficit went up by 23.2% to €372.4 million. Imports of goods, which grew faster than exports (1.8% and 1.6% respectively), slightly pushed up the foreign trade deficit by 2.7% to €607.6 million.

With the rise in exports and imports of services (by 5.7% and 6.7% respectively), the surplus on the balance of services went up by 4.7% and amounted to €998.6 million. The surplus on the secondary income balance increased from €77.3 million to €113.9 million.

The negative net flow of financial account investment (€1.3 billion) was mainly driven by the negative net flow of other investment (€2.6 billion) which was offset by the positive net flow of portfolio investment (€1.3 billion).

Vilnius, July 14 (ELTA) – On Monday, 14 July in Brussels, minister of foreign affairs of Lithuania, Kęstutis Budrys, is attending the European Union’s Foreign Affairs Council on trade issues. The main topics of the meeting are EU-US trade relations, EU-China relations, and the free trade agreement with Ukraine, reports the Foreign Ministry.

Following the announcement by US President Donald Trump over the weekend about a 30% tariff on European goods effective from 1 August, Lithuania’s top diplomat says there will be tough negotiations in the coming weeks, but he remains optimistic. According to the minister, Lithuania fully supports the position of the European Commission in the negotiations with the US.

“Tariffs are not good for anyone. We must avoid escalation in our relations with the United States and seek a mutually beneficial solution. We have so many common challenges in front of us that we can best solve together with our transatlantic partner,” Budrys told reporters ahead of the meeting.

The minister underlined that the EU had always stood for fair trade based on and respecting international rules. This must continue now.

Assessing the proposed free trade agreement with Ukraine, Budrys insisted that its preliminary version lacks ambition.

“The European Union lacks strategic ambition in its relations with Ukraine. We see Ukraine as an inevitable part of European security and the future, therefore, we have to proceed with economic integration,” the minister said.

(Final two paragraphs updated)

Vilnius, July 14 (ELTA) – On Monday night, in Biržai, northern Lithuania, two citizens of Moldova were detained on suspicion of planning to use explosives for the robbery of a cash machine in a shopping centre.

According to the police, officers from Panevėžys, Marijampolė and Kaunas counties, as well as Police Anti-terrorist Operations Unit ARAS took part in the operation.

Active search was launched for the third suspect, also a citizen of Moldova, who was caught on Monday morning, 14 July, in Biržai district.

The Organised Crime Investigation Unit of Marijampolė County Police Headquarters opened a pre-trial investigation in relation to this case.

The investigation identified suspects that might have committed similar crimes and discovered that they were planning a heist in Biržai.

Vilnius, July 14 (ELTA) – In the first half of 2025, 16.5 TWh of gas was delivered to Lithuania, the Baltic region’s gas transport hub, excluding the transit to Kaliningrad. This is 23% more than at the same time last year, when 13.4 TWh of gas was transported to Lithuania, reports Amber Grid, the operator of the Lithuanian natural gas transmission system.

When comparing the volumes of gas transported to Lithuania in the first half of this year with the first half of last year, it is important to note that last year gas supplies were limited by two significant factors: the Estonian-Finnish Balticconnector pipeline was out of operation for several months and the Klaipėda LNG terminal was temporarily closed for maintenance. This year, with all infrastructures working well, the gas supply to the Lithuanian system has increased by a quarter, not only for Lithuania’s needs, but also for the needs of other European countries.

“International flows show how the temporary loss of some infrastructure components changes the energy supply situation. The system we are building is oriented towards decades ahead, so Lithuania’s gas transmission infrastructure ensures that the country’s and the region’s needs are met even in the event of unforeseen disruptions. Our strategically designed infrastructure allows us to supply gas to markets outside Lithuania. In the first half of this year, 1 terawatt-hour of gas was transported through the Lithuanian gas transmission system, using the GIPL pipeline, to meet the needs of Ukraine,” said Nemunas Biknius, CEO of Amber Grid.

Through the GIPL interconnection between Lithuania and Poland was transported 1.6 TWh of gas to Europe in January-June 2025, 53% more than last year, when 1 TWh of gas was transported to Poland via the pipeline. Transportation of gas via GIPL pipeline to Lithuania was 0.4 TWh in the first half of this year, or 60% less than the 1 TWh transported in the first half of last year.

6 TWh of gas was transmitted to Latvia, Estonia and Finland via the gas interconnector between Lithuania and Latvia. This is twice as much as at the same time last year, when the volume of gas transported to the Baltic countries was 2.9 TWh.

The Klaipėda LNG terminal, the main source of gas supply to Lithuania and the other Baltic countries, accounted for 87% (14.3 TWh) of the total gas transported into the system in January-June2025. Flows from Latvia accounted for 10% (1.7 TWh).

In the first half of the year, 92 gigawatt hours (GWh) of biomethane was injected into the gas transmission system from biogas producers, or 65% more than in the first half of 2024, when the amount of biomethane injected into the gas transmission system was 56 GWh. Double the amount of biogas on the grid is provided by biomethane plants already in operation and newly connected to the transmission system.

Lithuania consumed 8.7 TWh of gas in January-June, 6% less than in the first half of 2024, when it reached 9.2 TWh. The lower gas consumption is due to the recent decline in the activity of Achema, the largest fertiliser producer in the region.

Vilnius, July 14 (ELTA) – On 14-15 July, minister of foreign affairs, Kęstutis Budrys, will attend the European Union Foreign Affairs Council meeting in Brussels, the Ministry of Foreign Affairs has announced.

At the EU Foreign Affairs Council dedicated to EU trade on Monday, 14 July, the ministers from 27 countries will discuss the EU–US trade relations, preparations for the EU-China Summit, scheduled to take place in Beijing later in July, strengthening the Union’s resilience to geo-economic threats, competitiveness, and the state of play of trade negotiations with Ukraine, MERCOSUR, ASEAN, and other countries.

Regarding the representation of Lithuania’s business and trade interests, the head of Lithuania’s diplomacy will speak with the Commissioner for Trade and Economic Security, Maroš Šefčovič.

On Tuesday, 15 July, the second day of the Council meeting, the EU foreign ministers will discuss the Russian aggression against Ukraine, military support for Ukraine, and the tightening of sanctions against Russia. Minister of foreign affairs of Ukraine, Andrii Sybiha, will join via videoconference.

Ministers will also consider possible EU measures in response to Georgia’s deteriorating situation and increasing repression against civil society in Georgia, the situation in the Middle East, the military escalation between Israel and Iran, Iran’s destabilising actions, and support for Russia’s aggression against Ukraine.

The Council meeting will be preceded by a meeting of the EU foreign affairs ministers with deputy prime minister and minister of foreign affairs of Moldova, Mihai Popșoi.

In addition, the Council will also discuss “Mediterranean 2025: the Pact and the reform of the Union for the Mediterranean”, and take stock of the outcomes of the EU-Southern Neighbourhood Ministerial Meeting on Monday and the geopolitical challenges facing the region.

The Council will also discuss other foreign policy issues, such as relations between the EU and the Community of Latin American and Caribbean States (CELAC) and the situation in Somalia.

Vilnius, July 14 (ELTA) – INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, has completed the investment in Pehart Group, a leading producer of household and industrial paper products in Romania. The consortium of International Finance Corporation (IFC), Banca Transilvania and ING Bank Romania provided an over EUR 150 million financing package with a significant sustainable linked component to fund the transaction and further development of Pehart Group, reports Invalda INVL.

The transaction with Abris Capital Partners, the independent private equity fund that previously held Pehart Group, was completed on 11th July.

Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund, said: “We are excited to back Pehart Group management team in bringing the company to the next level and we will support significant investments into expansion of Pehart’s manufacturing capacities and add-on acquisitions in the region strengthening Pehart Group’s market leadership and driving its next phase of growth.”

Gabriel Stanciu, CEO Pehart Group, commented: ”With the completion of the transaction with INVL Baltic Sea Growth Fund, we are honoured to join the leading private equity fund in the Baltics and benefit from its vision and expertise. We see this partnership as an opportunity to accelerate our development plans and strengthen Pehart Group’s position as a regional leader in the paper products industry. We will continue to invest in cutting edge technologies, diversify our product portfolio and expand our presence in international markets. We thank our previous partners, Abris Capital Partners, for their support in achieving our growth objectives in the past years. We look confidently to the future and are ready to capitalize on new opportunities together with INVL Baltic Sea Growth Fund.”

“The closing of this transaction is the culmination of a successful partnership with Pehart Group and its management team, whom we thank for the excellent collaboration over the past years. Together, we have succeeded in transforming Pehart into a strong regional player. We are proud of the progress of the company and the values built over this time and are confident that Pehart will continue to grow at an accelerated pace alongside its new partner. This transaction stands for Abris’ commitment to supporting high-potential businesses and ambitious management teams that can deliver sustainable performance in strategic sectors for the Central and Eastern European economy”, said Adrian Stănculescu, Partner and Head of Romania at Abris Capital Partners.

Equity for the deal was provided by the INVL Baltic Sea Growth Fund and some of its investors co-investing via INVL BSGF Co-Invest Fund II.

International Finance Corporation (IFC), a member of the World Bank Group, has led syndication of overt EUR 150 million financing package for Pehart Group.

“This investment underscores IFC’s commitment to fostering sustainable economic growth while addressing Romania’s energy challenges,” said Marcelo Castellanos, IFC`s Senior Country Manager for Southeastern Europe. “By supporting Pehart, we are advancing the country’s green transition, promoting job creation in underserved regions, and demonstrating the key role of private capital in achieving climate goals.”

“This partnership reflects our ongoing commitment to support our clients’ strategic plans and to provide smart financial solutions, tailored to their needs in a strategic sector. Thus, we are proud to support Pehart in their plan for sustainable growth and to consolidate their position as a leading player on the regional market”, said Cosmin Călin, Senior Executive Director of Large Corporate Clients, Structured Finance and Factoring Banca Transilvania. 

“ING has a long partnership with Abris in Romania, including Pehart. We are proud to continue supporting a local business in growing further and pursuing regional ambitions, as we are a solid supporter for the expansion of the Romanian economy. We thank Abris and Pehart for the partnership built along these years and wish many successes to Invalda INVL Group and Pehart going forward” said Raluca Tintoiu, Head of Wholesale Banking and deputy CEO at ING Romania. 

Deimantė Korsakaitė, Managing Partner at INVL Private Equity Fund II and INVL Baltic Sea Growth Fund, commented: “Finalizing the acquisition of Pehart Group marks a key milestone for the INVL Baltic Sea Growth Fund, completing a value-driven portfolio of ten companies across the Baltics, Poland and Romania, with one already successfully exited. With the launch of its successor INVL Private Equity Fund II earlier this year, which surpassed the target and reached EUR 305 million at first close, we are well-positioned to continue our investment strategy and supporting ambitious businesses across the Baltics, CEE region and the broader EU.” 

With a 187-year tradition, Pehart Group is one of the largest paper manufacturers in Southeast Europe with a portfolio ranging from toilet paper, paper towels, napkins, and other hygiene paper products to jumbo rolls, used in the converting process into paper products for household and industrial use. In 2024, Pehart Group succeeded in strengthening its leading position on the market through production efficiency and strategic investments. The focus on diversifying the product portfolio led to new launches, such as the SOVIO brand, targeting the Away-from-Home sector, as well as expansion into international markets. In 2024, the Pehart Group generated revenues of EUR 165 million and employed more than 550 people across its companies. 

Pehart Group is defined by continuous evolution, efficiency, respect for the planet’s resources and for the people who build its story every day. It continuously optimizes its products and services by creating a sustainable and equitable environment for a renewable future. Pufina, one of the most popular tissue paper brands in Romania, Alint, Altessa and SOVIO, the Away-from-Home products division, are part of the Pehart Group portfolio.