
EU
- As European authorities move closer to a compromise agreement with the Baltic state to defuse a dispute with Moscow, two sources familiar with the situation said trade from Lithuania to the Russian exclave of Kaliningrad might resume normally within days.
- Kaliningrad has been cut off from certain freight shipments from the rest of Russia since June 17 as a result of sanctions imposed by Brussels.
- Kaliningrad is bordered by countries in the European Union and depends on roads and trains that pass via Lithuania for the majority of its supplies.
As European authorities move closer to a compromise agreement with the Baltic state to defuse a dispute with Moscow, two sources familiar with the situation said trade from Lithuania to the Russian exclave of Kaliningrad might resume normally within days.
Kaliningrad has been cut off from certain freight shipments from the rest of Russia since June 17 as a result of sanctions imposed by Brussels. Kaliningrad is bordered by countries in the European Union and depends on roads and trains that pass via Lithuania for the majority of its supplies.
The people, who declined to be identified because the discussions are private, said that European officials are in talks about exempting the territory from sanctions, which have so far hit industrial goods like steel, opening the door for a deal in early July if EU member Lithuania drops its reservations.
The dispute over the Russian exclave’s isolation is putting Europe’s determination to uphold sanctions imposed after Russia’s invasion of Ukraine to the test and feeding concerns of an escalation after other constraints forced Russia into financial default.
While Western nations have vowed to defend Ukraine and reiterated their commitment at this week’s G7 and NATO summits, it is proving difficult for Europe to uphold stringent sanctions and prevent further escalation with Russia.
According to one of the persons, this is why European officials are looking for a compromise to end one of their many disputes with Moscow, with Germany’s support.
The Baltic state worries that Moscow may use military force to plough a land corridor through its territory if the regular route for Russian products to Kaliningrad, which first goes through its ally Belarus and then Lithuania, is not reinstated, the individual added.
Meanwhile, Germany has troops stationed in Lithuania and, should a conflict break out, may be drawn into it with its NATO partners.
The biggest economy in Europe also depends significantly on gas imports from Russia and would be vulnerable to any slowdown in flows if the Kaliningrad issue worsened.
“We have to face reality,” said one person with direct knowledge of the EU discussions, describing Kaliningrad as “sacred” for Moscow.
“(Putin) has much more leverage than we have. It’s in our interests to find a compromise,” he said, conceding that the eventual outcome may appear unfair.
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