The Brief – Unpredictable Lithuania? – EURACTIV.com

2022-09-10 04:01:44 By : Ms. Rose chen

Economy & Jobs

Energy & Environment

DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV Media network.

By Georgi Gotev | EURACTIV.com

30-06-2022 (updated: 04-07-2022 )

The Brief is EURACTIV's evening newsletter. [EPA-EFE/VALDA KALNINA]

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The EU seems to be backing down and is in talks to exempt the Russian enclave of Kaliningrad from sanctions after Lithuania started treating the flow of goods from mainland Russia to its Baltic Sea outpost as trade subject to the latest package of measures

For the time being, the goods concerned are iron, steel and minerals, but from 10 July, the list will be extended to cement and alcohol, then to coal in August and to oil products such as fuel in December.

If the traditional route for Russian goods to Kaliningrad, first via its ally Belarus and then Lithuania, is not restored, Lithuania fears Moscow could use military force to plough a land corridor through its territory.

The possible compromise could see the freight movement between Russia and Kaliningrad exempt from EU sanctions on the grounds that it does not count as normal international trade because the exclave is part of Russia.

The case may soon be closed. But to avoid other tensions, it’s worth taking a closer look at a situation when one EU member state jeopardises the whole of the EU.

According to diplomatic sources, Lithuania did not correctly coordinate its move, possibly assuming it was only implementing EU sanctions (as was the initial explanation by the EU top diplomat Josep Borrell).

Other member states are said to have frowned upon the Lithuanian initiative from the beginning, although a semblance of support was publicly demonstrated.

Significantly, in the conclusions from the last EU summit on 23-24 June, there was no text in support of Lithuania, despite the wish of Vilnius.

This is the second episode this year in which Lithuania takes an initiative that does not bode well for the rest of our Union.

The previous case was Lithuania’s de facto opening of diplomatic relations with Taiwan, a well known red rag for China. Consequently, Beijing downgraded diplomatic ties with Vilnius and Lithuanian exports have been stopped at China’s border. Reportedly, China simply erased the name of Lithuania from its customs register.

China has also pressed multinationals to sever ties with the Baltic country or face exclusion from its market.

That unusually harsh move dragged companies into a political dispute and placed Beijing on a collision course with the European Union. Dragging the entire Union into the dispute could have unforeseen consequences.

Despite being caught off-guard, the EU has tried its best to side with Lithuania. It has filed a case with the World Trade Organisation for what it considers “coercion”, although the process could take many months or even years, and the outcome cannot be predicted.

Lithuania is a small country, but if it can no longer sell its rum to China, Taiwan is more than happy to buy the drinks instead.

But for the rest of the EU, Taiwan cannot replace China as a market.

As part of its “One China policy”, Beijing views self-ruled and democratically governed Taiwan as its territory, with no statehood rights.

The rest of the EU has complied with this policy. Vilnius, however, really threw a spanner in the works.

Possibly Lithuania sees Taiwan as a sister country, trying to exist in the shadow of a superpower.

The impression remains, however, that Vilnius tends to take unilateral, usual and far-reaching initiatives and only then looks to the EU bloc for help.

Lithuania is not the only country whose bilateral problems with third countries are causing disquiet in the EU. But the two cases illustrated above concern decision-making that should have been consulted with the EU partners early on instead of presenting them with a fait accompli.

Despite the many meetings at many levels, coordination in the EU on strategic and foreign policy issues is far from perfect.

But if an EU member state expects the entire Union to be able to stand behind it and even defend it if necessary, such coordination is of crucial importance.

The strength of the EU is also in its predictability.

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Ukrainian activists and politicians have urged the European Parliament to reject plans to label nuclear and gas as ‘green’ investments , saying this would be a “gift to Putin.”

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Meanwhile, the EU-funded Alliance for Zero-Emission Aviation aims to upgrade Europe’s aviation infrastructure to meet the needs of electric and hydrogen-powered jets.

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Kidney disease carries one of the highest financial burdens for society, so researchers are working on improving disease management in a way which simultaneously reduces costs .

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Last but not least, check out our Economy Brief.

Views are the author’s.

[Edited by Alice Taylor/Zoran Radosavljevic]

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