Category: Lithuania

The situation in Lithuania is quite dynamic at the moment, says Robertas Ciocys, Partner at Ellex Valiunas, pointing both to the recent parliamentary elections and the overspill of Belarusian IT companies into the country. 

“Our elections consist of two rounds,” Ciocys explains. “In the first round, where we elect one half of the parliament, we vote for political parties, and in the second round we vote for individual politicians.” According to him, “the most important trait of our system is that you always have a coalition government. As a result it is more difficult for just one party to dominate the political discourse.” As far as the results of this year’s elections are concerned, Ciocys says, “it seems we will have a change in our government and the center-right coalition will probably take over. That change seems to be welcomed by both the business sector and a large portion of our population.”

Despite the potential change in government, Ciocys does not expect Lithuania to depart from its strategy of attracting Belarusian IT companies to its market. Many Belarusian companies were prompted by the political unrest in their country to move their businesses to the Baltics or Ukraine, he says. “We are closer to them, geographically speaking,” he says, so “a number of companies are expected to relocate here, and our government is in the process of facilitating their move. Since they are coming from a non-EU country, we are trying to adapt our legislation in order to speed up the immigration process and facilitate the establishment of companies, and we are working to issue work permits for those companies.”

According to Ciocys, “Lithuania has been trying to position itself as a key regional partner to big companies for outsourcing accounting and IT work. Danske Bank is one of the examples. The current view is that, in comparison to the volume of work, there is a lack of IT specialists on the market. That could be changed with the influx of Belarusian companies.” 

Apart from the booming IT sector, Ciocys says, most industries in Lithuania are experiencing the same problems they are elsewhere in Europe. But not all. “Some sectors have slowed down, but the pharmaceutical industry is very busy. Also, there is a view that, as a consequence of the Covid-19 crisis, a lot of the manufacturing will shift from China to Europe.” According to him, “states and companies do not want China as their sole supplier. As a result, they have begun approaching some of our manufacturers across different sectors, and we will see what that will bring us in the future.”

Cobalt has advised Arunas Kuraitis on a 30-year lease of a building in Vilnius’s Old Town from Lithuania’s Jesuit Province. Wint advised the Jesuit Province on the deal.

According to Cobalt, “for a long time, the building belonged to the Abramaviciai family, which rebuilt the building into an ornate Abramavicius Palace. The palace later became part of the religious community and still belongs to it.”

Cobalt’s team included Partners Arturas Kojala and Paulius Markovas.

Wint’s team included Partner Olga Petroseviciene and Counsel Donatas Zdanavicius.

Cobalt has advised Practica Capital on the final close of the Practica Venture Capital II fund, which included a EUR 2 million investment from Swedbank Asset Management. The total fundraising amount reached EUR 28.5 million.

According to Cobalt, ”the anchor investor of the Practica Venture Capital II fund is Invega. The rest of the funds were committed by Practica Capital together with a number of other local and international investors. The fund will focus on early-stage venture capital investments in the Baltics and Baltic-origin (e.g., Baltic diaspora, other Baltic connection) ventures in Europe. Since the establishment of Practica Venture Capital II in 2019, the fund has already made 14 investments in companies, among which we can find such already well-known companies as Ziticity, Oxipit, Eddy Travels, or PVcase.”

Cobalt’s team included Partners Eva Suduiko & Akvile Bosaite, Senior Associate Aurelija Balciune and Associate Andra Gavedaite.

Cobalt could not provide additional information on the matter.

Cobalt has advised Practica Capital on the final close of the Practica Venture Capital II fund, which included a EUR 2 million investment from Swedbank Asset Management. The total fundraising amount reached EUR 28.5 million.

According to Cobalt, ”the anchor investor of the Practica Venture Capital II fund is Invega. The rest of the funds were committed by Practica Capital together with a number of other local and international investors. The fund will focus on early-stage venture capital investments in the Baltics and Baltic-origin (e.g., Baltic diaspora, other Baltic connection) ventures in Europe. Since the establishment of Practica Venture Capital II in 2019, the fund has already made 14 investments in companies, among which we can find such already well-known companies as Ziticity, Oxipit, Eddy Travels, or PVcase.”

Cobalt’s team included Partners Eva Suduiko & Akvile Bosaite, Senior Associate Aurelija Balciune and Associate Andra Gavedaite.

Cobalt could not provide additional information on the matter.

Sorainen has represented Seven Entertainment and its shareholders in the sale of Lithuania’s Siemens and Cido multi-purpose arenas, Tiketa ticket distribution company, and Seven Live event organization company, to Lithuania’s DG21. Motieka & Audzevicius advised the buyer on the deal.

Financial details of the deal, which remains contingent on approval by Lithuania’s Competition Council, were not disclosed.

Sorainen’s team consisted of Partner Algirdas Peksys and Senior Associate Jonas Kiauleikis. 

Motieka & Audzevicius’s team included Partner Giedrius Kolesnikovas, Senior Associate Rokas Jankus, and Associates Laurynas Ramonas, Aivaras Grigas, and Darius Amsiejus.

Triniti Jurex has successfully defended the Lithuanian Radio and Television Center Telecentras and its CEO, Remigijus Seris, in a defamation lawsuit filed by the former President of the Lithuanian Business Confederation, Valdas Sutkus.

Triniti Jurex reported that, “two years ago, in an article on the Lithuanian portal 15min, Seris commented on several unpleasant encounters with Sutkus and his derogatory remarks. In turn, Sutkus filed a lawsuit against Seris and Telecentras for insulting his honor and dignity.” According to the firm, “the Vilnius Regional Court ruled that all the statements expressed in the article corresponded to reality and could not humiliate Sutkus. The court also ordered him to reimburse all litigation costs incurred by both Seris and Telecentras.”

Triniti Jurex’s team was led by Partner Jurgita Judickiene.

Sorainen’s Lithuanian office has helped Dexcom establish a global business service center in Vilnius, Lithuania, which is set to open in 2021.

Dexcom is a developer, manufacturer, and distributer of continuous glucose monitoring systems for diabetes management. Its headquarters are in San Diego, California.

According to Sorainen, Dexcom’s Vilnius business service center will support its operations and customers across the EMEA region.

Sorainen’s team consisted of Partner Algirdas Peksys, Counsel Agniete Venckiene, Senior Associates Vytautas Sabalys and Aurelija Daubaraite, and Associate Jurgita Tekoriene.

Triniti Jurex has successfully represented the Visoriu Slenio Gyventoju Bendruomene association in its petition to the Supreme Administrative Court of Lithuania to order a reevaluation of the environmental impact study regarding planned construction of the M. Lietuvio Street bypass in Vilnius.

Triniti Jurex reports that, “M. Lietuvio Street is planned to become a part of the Northern Vilnius bypass, which should connect the Vilnius Western bypass and Ukmerges Street, on one end, with Moletai road on the other.” According to the firm, “the initial environmental impact study, conducted by the Vilnius City Municipality, stated that M. Lietuvio Street will be restricted to heavy vehicle traffic and speeds of up to 50 kilometers per hour. However, the court decided that the study failed to consider the category of the street, under which heavy vehicle traffic and speeds of up to 70 kilometers per hour are allowed.”

As a result of the petition, the court ordered a new study to be conducted, which should reassess the potential impact of the planned construction on the health of the population.

Triniti Jurex’s team was led by Partner Deivis Valiulis.

Glimstedt has successfully represented Nigeria’s Arik Air Limited in a cross-border debt collection enforcement case before the Kaunas Regional Court in Lithuania.

Lufthansa Technik Aero Alzey requested the enforcement of a debt owed by Arik Air based on a European Enforcement Order previously issued by a court in Germany. Arik Air’s Boeing 737-86N aircraft was seized by the Lithuanian authorities upon landing in the country as part of the enforced collection of over EUR 2 million in debt.

The case was brought before the Kaunas Regional Court, which suspended the enforcement process in Lithuania. According to Glimstedt, “the court found that if the enforcement was made against [Arik Air’s] aircraft, it would result in disproportionate measures, which would infringe the balance of interests between the parties.”

Glimstedt’s team was led by Associate Partner Laura Augyte-Kamarauskiene.

Triniti Jurex has successfully represented Restaurants Group Fortas in a dispute with an unnamed insurance company.

According to Triniti Jurex, “in one of the restaurants located in a Vilnius entertainment and business center, the cold-water hose of the tap broke at night and water flooded both the rented restaurant and other premises of this center. The insurance company indemnified the building owner and other affected entities, but in a recourse, demanded our client to compensate for the insurance payments.”

Triniti Jurex’s team was led by Partner Agne Varneliene.