Skinest Baltija Fails To Block Lithuanian Railways' Sleeper Purchase In Court

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Skinest Baltija, a company controlled by Estonia's railway services and investment group Skinest Rail, has failed in its bid to block the purchase of railway sleepers by Lithuanian state-run railway company Lietuvos Gelezinkeliai (Lithuanian Railways).

Vilnius Regional Court on Monday ruled against the application of interim measures. Skinest Baltija had asked the court to rule the purchase contract void.

"The requested interim measures would breach the public interests and would run counter to the principle of cost-effectiveness," the court said in a commentary sent to BNS Lithuania.

Lithuania's transport Ministry said in early June that Lietuvos Gelezinkeliai's planned contract, worth over 3 million euros, with Skinest Baltija, on the purchase of railway sleepers is not in line with national security interests.

According to the ministry, Skinest Rail's owner Oleg Ossinovski "maintains relations with institutions of foreign states or natural or legal persons from those states which increase the risk or pose a threat to national security". Also, Ossinovski is a suspect in a corruption case in Latvia.

Lietuvos Gelezinkeliai signed a contract on the purchase of railway sleepers with Lithuanian company Swetrak in May. The deal is worth 709,000 euros, with an extension provision, and the maximum worth could reach 2.9 million euros.