Impact of cheaper Belarusian biofuels: Lithuanian companies suspend operations and sell equipment



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“It just came to our knowledge then. If there were any real changes there (in Belarus – ELTA), the first steps would probably be higher exports, as they would simply require current funds. They would try to bring what they have and what they can to other countries even further. to profit from the money.
If there are no real changes, but there are sanctions from Europe, it is very difficult to say what they would be and to what extent. We would be a little more afraid to speculate, because there can be anything and nothing can change, ”V. Gaubytė told Eltai.

According to her, so far the situation on the Lithuanian biofuel market remains tense.

“But that the situation has not changed and that we obtain a lot of raw materials from the Belarusian side, and our companies continue to suspend operations, all this is exactly the same as before. The ministries are coordinating certain decisions, but although the decisions were supposed to be implemented before July at the request of the Seimas, nothing has been adopted to date.

The initial decision was that if the price of the transaction is the same, the price does not change for the consumer, the Lithuanian raw material should be preferred, if all other parts of the transaction remain the same. In this way, we make sure to preserve jobs in the regions and use local raw materials, but we have the opportunity to import if the price goes up a lot or we have less ”, said the director of the association.

According to V. Gaubytė, some companies, unable to survive in the market, stop their activities, others try to sell their equipment.

“Some are not even trying at the moment (selling equipment – ELTA), because those prices, where not even leasing, can pay off after selling it. Many of those practical life factors show that it is difficult to know what people who will lose their jobs will do because they cannot go to other countries right now. They received enough normal salaries in the regions, “said V. Gaubytė.

The quarantine, according to the director of LITBIOMA, had the greatest impact on the pellet market.

“As for the pellet more, because it is an international fuel and is transported, there were several nuances with the transport, the transport, the situation in the Italian market was very bad. Clearly, there has been a slight decrease in demand because people did not focus on it and did not live at all. She seemed to recover.

As for the chip and our premises (production – ELTA), it is not, except that people in companies that have been suspended for several months do not have the opportunity to choose something else. Perhaps this is not a factor for companies (consequences – ELTA), but a human factor ”, said the director of the Eltai association.

“We’ll see, it will probably take some time to see how that season unfolds. That will have changed a bit, so it’s very drastic, probably not,” added V. Gaubytė.

According to LITBIOMA, which has been stable for a long time, biofuel imports, mainly from Belarus, have increased by 15 to 30 percent in recent years, reaching about 20 million. euros.

This growth worries Lithuanian biofuel producers and suppliers, who find it difficult to compete with third countries that can supply cheaper raw materials.

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