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Lithuania's state-run railway company Lietuvos Gelezinkeliai (Lithuanian Railways, LG) has removed Skinest Baltija and Askita from its tenders due to an alleged competition-restricting agreement.
Lithuanian Railways removes Skinest Baltija and Askita from its tenders
© Lietuvos geležinkeliai

The railway company said in a statement the decision was made taking into consideration recommendations from a commission for the coordination of protection of objects important to national security and the Competition Council.

LG suspects Skinest Baltija and Askita of coordinated activity as the same employee amends and submits tender documents during a short period of time. Besides, both suppliers have or used to have common staff, both suppliers submit identical products documentations and the same mistake are spotted in different documents.

According to the Lithuanian Center of Registers, Askita was established in February, 2018. And figures from the social insurance fund, SoDra, show it has two employees.

Both companies have been removed from public procurement tenders they took part in together.

Skinest Baltija is part of the Estonian Skinest Rail group.

The Lithuanian government ruled in June, 2018 that Oleg Ossinovski, the owner of Estonia's Skinest Rail, which is Skinest Baltija's shareholder, "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".

The Lithuanian government later decided not to sign with Skinest Baltija a cntracdt, worth more than 3 million euros, on railway sleepers as it would run counter to national security interests.

Vitras-S, also part of the Skinest Rail group, is now rebuilding the Renge railway section dismantled in 2008.

BNS
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