News

S. Darius and S. Girenas, the two famous American-Lithuanian pilots, have again reason to smile from their 10 litas note.

Lithuania’s economy expanded at a faster rate in the second quarter than previously estimated, driven by recovering consumption and the construction industry.

Gross domestic product grew 6.3 percent from the same three months of 2010, compared with a preliminary estimate of 6.1 percent released on July 28, the Vilnius-based statistics office said in an e-mailed statement today. Output rose a seasonally adjusted 0.4 percent from the previous quarter.

Lithuania’s economy, part of the Baltic region that suffered the world’s deepest recession in 2009, is growing at the second-fastest rate in the European Union after Estonia, driven by foreign demand for its products and strengthening domestic consumption. The central bank andSwedbank AB (SWEDA) both raised their 2011 GDP forecast for Lithuania in the past month.

“Unsurprisingly, private consumption continued to grow briskly, while export and import growth slowed, but remained at good levels,” Annika Lindblad, a Helsinki-based analyst with Nordea Markets, said in an e-mailed note. “We remain confident with our forecast of around 6 percent growth this year, as the domestic economy continues to gain strength and exports are still doing well.”

R
http://www.bloomberg.com/news/2011-08-29/lithuania-revises-gdp-growth-higher-as-consumption-recovers.html

Lithuania’s unemployment dipped to 15.6% in the Q2, compared to 17.2% last quarter (according to labour force survey). In Estonia unemployment rate dropped from 14.4 to 13.3%, in Latvia – from 16.6 to 16.2%. Lithuania’s figure was just above DnB NORD estimate (15.5%) and is in line with the annual forecast.

In Lithuania, job growth accelerated in agriculture, construction and retail trade. Graduation in June usually brings an upswing in youth unemployment, however this summer rising economic activity and preparation for the European Basketball Championship are expected to absorb most of it. Emigration has also eased down – during the first seven months 33.1 thousand people left the country, i.e. 29% less compared to the same period last year (46.7 thou).

Assessment: Employment will improve further on the back of solid growth of economic activity. We expect unemployment to reach 13% in Lithuania, 14% in Latvia and 10% in Estonia by the year-end. Admittedly, gradually improving employment figures are expected to increase pressure on labour costs – bottlenecks emerge in the sectors with most visual recovery.

Jekaterina Rojaka
Chief Economist
DnB NORD Bank

Losing Trust in Lithuania
BY JEREMY DRUKER

Jeremy Druker is the Executive Director and Editor in Chief of Transitions Online (TOL), a media development organization that he co-founded in 1999. TOL publishes an Internet newsmagazine on Central and Eastern Europe and runs journalism and new media training programs with a mission of improving the professionalism, independence, and impact of the media and civil society organizations in this region.

Over the past few years Vilnius has served as something of a sanctuary for Belarusian human rights activists, critically minded students, independent journalists, and other “enemies” of the regime. There is a Belarusian Human Rights House, which provides a meeting space and facilities for human rights defenders, and perhaps the only university operating completely in exile—the European Humanities University, with around 600 students—has its home here. A short and cheap bus trip from Minsk, the city has also proven to be a popular venue for international meetings that gather opposition types.
All of that could be changing, after the recent arrest in Belarus of Ales Bialatski, chairman of the Viasna Human Rights Center. The Belarusian authorities have accused him of tax evasion over money that he received through accounts in Lithuania for his human rights work. Disturbingly, it has emerged over the past week that the authorities in Lithuania were directly involved with providing the Belarusians with the financial information that led to his arrest.

Read more at:
http://eastofcenter.tol.org/2011/08/losing-trust-in-lithuania/

Hungarian Wizz Air
Central and Eastern Europe’s largest low-cost carrier expands in Vilnius

Hungarian Wizz Air remains confident of the success of the new base in the Lithuanian capital, which was launched last April.

Wizz Air launched its operations and opened its 14th operating base in Vilnius in April, 2011. Currently Wizz Air deploys one Airbus A320 aircraft and operates 21 flights on 8 routes per week.

Wizz Air has one of the youngest fleets in the world, consisting of 35 Airbus A320s.

This summer, FL Technics, an aircraft maintenance and repair organization signed its first contract with Wizz Air. FL Technics has been entrusted to provide maintenance services for the airline’s Airbus 320 at its newly opened base in Vilnius International Airport.

According to the recently signed agreement, FL Technics will provide Wizz Air with the fixed price all inclusive line maintenance support, coupled with additional support services.

“We are honoured that one of the largest carriers in the CEE region, Wizz Air has decided to start cooperating with FL Technics, which is the reward for our strive for quality and customer satisfaction. We have worked very hard and have earned the name of a trustworthy aircraft technical maintenance centre, leader in CEE region. Wizz Air has joined a long and constantly expanding list of our highly appreciated clients and partners. We are looking forward to an ongoing and gradually growing cooperation between FL Technics and Wizz Air” – said Jonas Butautis, CEO of FL Technics.

Are you an AT&T residential broadband customer in the United States, grumbling over the inauguration of 150GB bandwidth cap for your pokey DSL connection? Or maybe you're a Canadian—bitter over the low ceiling caps imposed by Rogers Cable and other ISPs, not to mention the likely expansion of metered billing packages down the line?

If you've had the vague sense that the Internet in North America is moving back toward scarcity rather than forward to abundance, we've got a solution for you. Move to Lithuania. TEO LT, Lithuania's top telecommunications service, says that in two weeks the company will boost the speed of its ZEBRA Fiber-to-the-Home ISP service "premium" plan to up to 300Mbps for downloads.
The "basic" plan's speed will double—from 20 to 40Mbps; the "optimal" plan will go from 80 to 100Mbps.

According to the Fiber to the Home Council Europe, Lithuania is already the front runner when it comes to deployment of FTTH networks. It tops the European list at 22.6 percent household penetration. Next comes Sweden at 13.6 percent. In absolute numbers, Russia is number one at 4.18 million fiber households, followed by Sweden (600,000) and France (486,700).

TEO says its telecom network is accessible to about half of Lithuania: 570,000 households. Its next-generation services are available to most of the residents of that country's big cities: Vilnius, Klaipeda, and Kaunas. Over half of Panevėžys and Šiauliai residents can get them too.
Why are Lithuanians getting this FTTH windfall? Investment, it appears. TEO says it will plug more than LTL70 million (about US$30 million) into the fiber project by the end of this year, bringing the total investment to LTL325 million (about US$139 million) over four years.

Lithuania's neighbor Estonia, by the way, is ranked by Freedom House as among "the most wired and technologically advanced countries in the world." In 2009 more than 91 percent of its citizens filed their taxes online. Estonian identity cards facilitate widespread electronic voting for city and European Parliament elections.

"Restrictions on Internet content and communications are among the lightest in the world," Freedom House's latest report on the country notes.

 
Lithuania's prime minister, Andrius Kubilius is on bicycle holiday in Belarus, while the tension between the neighbouring countries seemingly is growing.

LITHUANIA'S relationship with Belarus is one of the puzzles of European diplomacy. Seen one way, relations seem icy. Lithuania is a favoured port of call for the beleaguered Belarusian opposition. The autocratic regime in Minsk shelters Vladimir Uschopchik, whom Lithuania wants to put on trial for the killings and failed putsch of January 1991. A senior Lithuanian spook, Vytautas Pociūnas, posted to a diplomatic job in Grodno (Gardinas in Lithuanian) died in still-unexplained circumstances in 2006.

Yet below the surface things are different. Trade ties are good. The Lithuanian authorities quietly keep close working relations with their southern neighbour, and have blocked (or at least queried) some attempts by the EU and America to impose sanctions. Lithuania's prime minister, Andrius Kubilius, takes his holidays in Belarus, cycling round the sites of the old Grand Duchy of Lithuania, with the local KGB (as it is still called) in polite but puzzled pursuit. Some fear that Belarus is the Achilles heel of Lithuania's Euro-Atlantic orientation. Others think that Lithuania is the one country that can guide Belarus back into the European fold. Perhaps both views are right.

Read the article at:
http://www.economist.com/blogs/easternapproaches/2011/08/lithuania-and-belarus

 
Jekaterina Rojaka,
Chief economist, DnB NORD.

Lithuanian consumer prices declined by 0.2% m/m in July, down from -0.1% in June. The drop in prices was mainly in line with market expectations and DnB NORD's estimate (-0.1%). Admittedly, the annual rate eased down from 4.8% to 4.6% y/y.

The main cause of the decline in the month-on-month rate was an expected (seasonal) drop in the prices of food, and a pronounced drop in the prices of clothing and footwear.

However, latest producer prices figures in Lithuania issued last week proved that cost pressures are still rising, especially on energy and food products. On the other hand, forward-looking surveys of manufacturers’ pricing intentions suggest that output price inflation should rise only marginally. Moreover, falling oil prices are expected to fetch down prices further.

Assessment: We expect consumer prices to ease somewhat in nearest months, before accelerating in autumn after the heating season begins. However, higher base effect will reduce an increase in prices. Annual inflation is forecasted to reach 4% in the end of 2011, while it will heavily depend on energy price developments.

 
Plainclothes Belarussian policemen detain a protestor in central Minsk in July 2011 (AFP/File, Viktor Drachev)

MINSK — Officials from the UN and EU on Friday joined calls to Belarus to release the head of a human rights group, who was arrested and charged with crimes punishable by seven years in jail.
Vyasna (Spring) leader Ales Beliatsky had spearheaded his organisation's drive to help political prisoners and provide legal support to those who dared rise against President Alexander Lukashenko's dictatorial rule.
The group was also instrumental in releasing details about those detained during a weekly series of protests inspired by the social network revolutions of the Arab world.
Vyasna has been the target of repeated police raids and Beliatsky's arrest Thursday evening was on tax evasion charges. The group's office was also searched and various documents removed.
The UN High Commissioner for Human Rights expressed concern over the "harassment" of rights activists.
"Given the many worrying reports of harassment of human rights defenders in Belarus, we call on the authorities to guarantee in all circumstances the physical and psychological integrity of Bialatski and all human rights defenders in Belarus," said spokeswoman Ravina Shamdasani.
European Parliament president Jerzy Buzek said events such as those witnessed in Minsk were "unacceptable on our continent in the 21st century".

Two “Lithuanian” mayors known for their stunts
By Jeremy Druker - August 4th, 2011

Vilnius Mayour Artura Zuokas crushing illegally parked cars with a ‘tank’.

It’s not so often a video from Lithuania goes viral or even semi-viral, so I can’t avoid calling more attention to a recent stunt pulled by the mayor of Lithuania to convince people not to park in bike lanes. The video has since been picked up by many media, including the Guardian, but I saw it first, of all places, on an environmental website in the U.S. called Grist. It’s now been viewed by almost 1.4 million people. 

The episode got me thinking about another mayor of Lithuanian origin known for his stunts, but this time on the other side of the world. Somehow, I only recently heard about Aurelijus Rutenis Antanas Mockus Šivickas — a Colombian mathematician, philosopher, and politician — who is the son of Lithuanian immigrants.

Antanas Mockus, former Mayor of Bogota, Colombia.

Antanas Mockus, as he’s better known, is a real character, who actually mooned students when he was president of the National University of Columbia. While he eventually had to step down over the scandal, the publicity helped him in his subsequent mayoral campaign. He ended up serving two terms as Bogota’s mayor, leading a transformation of the city...

Read more at:
http://eastofcenter.tol.org/2011/08/two-lithuanian-mayors-known-for-their-stunts/

The Lithuanian state finance regulator has attacked Norwegian bank DnB NOR for “unprofessional behaviour” after it allegedly sold structured savings products to amateur investors who went on to lose NOK 200 million (over USD 37 million).

640 Lithuanian investors were sold the structured savings products worth around NOK 1.55 billion (nearly USD 288 million) in the months before the financial crisis hit through DnB NORD, originally a joint operation between DnB NOR and a German Bank that trades in Estonia, Latvia, Lithuania and Poland. The Lithuanian authorities have criticized the bank for selling such products via inexperienced investors that were not sufficiently informed of the risk.
Norwegian Broadcasting (NRK) reports that the Lithuanian regulator has written a report that states, “we will not tolerate such unprofessional behaviour.” It goes on to say that “one scrupulous actor” can affect confidence in the whole financial markets system. The Lithuanian authorities now expect DnB NORD to compensate those who have lost out from the deals.

DnB NOR took full control of the bank in January. The company’s information director, Thomas Midteide, told news agency NTB that it did not agree with the regulator’s conclusions but was pleased to see that no measures were taken against the bank. “This is an old issue, and we did not own the bank at the time these sales happened,” Midteide commented, adding that “the products have not been sold in the last few years.”

Newsletter 3 August:

Two Norwegian companies to invest over LTL 70 million in Lithuania

The Ministry of Economy has signed letters of intent with Norwegian companies Mirror Accounting AS and Storebrand Group planning to implement LTL 70.5 million worth of development projects in Vilnius and create at least 270 jobs.
 

News

August 01, 2011

HITACHI shows interest in investment environment in Lithuania Press releases

During a working visit to Lithuania, representatives of Hitachi Corporation, a strategic investor in the new Visaginas nuclear power plant (NPP), also visited the public agency Invest Lithuania. During the meeting, Akira Shimizu, the Managing Director of Hitachi Europe Ltd., gave a detailed presentation of the activities and next development plans of the company as well as inquired about the investment environment in Lithuania.

All news

Events

September 08, 2011

Upcoming 15th CIFIT in China

The China International Fair for Investment and Trade (CIFIT) is China's premier investment event and a globally leading platform for investment stakeholders worldwide to showcase investment climates and a never-ending matchmaking scene for projects and capital.

September 20, 2011

INVEST LITHUANIA at Finance Transformation Summit

Invest Lithuania will be expecting to meet representatives of expanding businesses at the Finance Transformation Summit, which will be held in Dallas, the US, on 20-22 September.

September 25, 2011

Shared Services Exchange conference in Germany

INVEST LITHUANIA is preparing for the Shared Services Exchange event to take place in Germany and gather strategic decision makers to take a step back from their current operations, see what strategies and solutions others are adopting, develop new business partnerships and make investment choices that deliver innovative solutions to their shared services organisation and the wider business.

September 26, 2011

First U.S. Certified Trade Mission to Lithuania

The American Chamber of Commerce in Lithuania is proud to announce the first U.S. certified Trade Mission to Lithuania at the end of September, 2011. This kind of mission has a record of success for almost 13 years in other countries, bringing together the power of business interest and governments' support, promoting real business opportunities worldwide and putting companies on the fast track of growth.

September 27, 2011

Lithuania will be presented for British businesses in September

INVEST LITHUANIA in partnership with Cormack Consultancy Baltic Limited (CCB), and in cooperation with the Lithuanian embassy in London, will host a series of 3 seminars in 3 cities in the United Kingdom for the promotion of Lithuania as an inward investment location relating to R&D, Shared Services and BPO, as well as Manufacturing.

September 28, 2011

INVEST LITHUANIA to participate at 8th Annual Shared Services and BPO conference

In 2009 Annual Shared Services and BPO conference took place in Prague, the Czech Rep., and gathered an audience of 450 participants, last year 500 shared services representatives from around the globe came to the conference in Dublin, Ireland, and this year the event hosted in Palau de Congressos de Catalunya, Barcelona, Spain, expects to have 600 participants.

October 25, 2011

Event series for British businesses by INVEST LITHUANIA in October

INVEST LITHUANIA in partnership with Cormack Consultancy Baltic Limited (CCB), and in cooperation with the Lithuanian embassy in London, will host a series of 3 seminars in 3 cities in the United Kingdom for the promotion of Lithuania as an inward investment location relating to R&D, Energy and Manufacturing.

All events

In the last ten years, Latvia has witnessed the biggest and Lithuania the smallest increase in prices in Baltic states. Lately, however, the increase has been lead by Estonia, followed closely by the other two countries.

In one year, the prices of food and non-alcoholic drinks have gone up by 11,5%. Almost all food products have been affected by the rise, announces ERR Radio News.

The Estonian price level has increased a bit more than Latvian and Lithuanian, where food prices have increased by 10,5% and 10,2% accordingly, but as the rise started earlier in Estonia, the other Baltic states are catching up with it.

Viktoria Trasanov, the chairwoman for statistics of price and salary department of the Estonian Statistics, says that even though Estonian prices went up by 11,5% compared to about 10% in other states, the numbers this year differ greatly – food and non-alcoholic drinks witness a rise in prices by 4,3% in Estonia, 6,3% in Latvia and 6,6% in Lithuania, showing a slower tempo in Estonia. 

Source:
http://balticbusinessnews.com

Žygimantas Pavilionis is a career diplomat who became ambassador of Lithuania to the United States in August 2010.

Born on August 22, 1971, in Vilnius, Pavilionis grew up with parents who prized higher education; his father, Roland Pavilionis, being an academician and his mother, Mary Pavilionienė Venus, a professor.

He attended college at Vilnius University, where he earned a master’s degree in philosophy and postgraduate diploma in international relations.

In 1993, Pavilionis joined the Ministry of Foreign Affairs and worked in the Western European Division, with the rank of third secretary.

He was assistant director of policy from 1994-1995, before moving to the Ministry of European Integration, Department of Political Cooperation.

He worked in Brussels, Belgium, at the Lithuanian Permanent Mission from 1999-2002.

Pavilionis was then promoted to lead the Ministry of Foreign Affairs’ European Integration Department from 2002-2004.

Most recently, he served as ambassador-at-large and chief coordinator for Lithuania’s presidency of the Community of Democracies, as well as chief coordinator for the Transatlantic Cooperation and Security Policy Department at the Ministry of Foreign Affairs.

Pavilionis and his wife, Lina Pavilioniene, have four sons.

-Noel Brinkerhoff
http://www.allgov.com

The quantity of Lithuanian visas issued to citizens of Belarus in the first half of 2011 has increased by 59% as compared to the analogous period of the last year.

It has been stated by the director of Foreign Ministry’s Consular Department Vytautas Pinkus at a session of an inter-institutional working group in Palanga on July 27, BelaPAN and the press-service of the Lithuanian Foreign Affairs agency report.

As said by Pinkus, the number of visas is mostly coinciding with tourists’ flows. “In 2010 the Lithuanian Embassy in Minsk and Consulate General in Hrodna together issued more than 107 thousand visas, and 77 thousand were issued just in the first half of this year,” reported the press service of Lithuanian MFA. In particular, in June 2011, compared with the same period in 2010, the number of visas issued by Lithuanian diplomatic representations in Belarus rose by 48%.

The inter-institutional working group was established by an order of the Foreign Minister Audronius Azubalis.
The group began its activities on 21 October 2010. In co-operation with the government and business partners, the working group makes decisions with regard to the enhancement of the procedures of visa issuance to tourists.

Source:
http://www.charter97.org