LTG Infra, the infrastructure management company of the LTG group, has disclosed a new financial claim from “Latvijas dzelzceļš” totaling €32.77 million. The demand, received on September 4, 2025, seeks compensation for lost profits and accrued interest.
According to the 2025 activity report from LTG Infra, the company requested the specific calculation methodology and detailed documentation supporting the claim. On December 23, 2025, “Latvijas dzelzceļš” responded that these calculations would not be provided at this time.
Further complications may arise as the report notes that “LDz Cargo” is currently calculating its own damages, although a formal claim has not yet been submitted.
Dispute Over Unfounded Claims
LTG Infra has stated that it disagrees with these demands, characterizing the claims as unfounded. A comment from the LTG group indicates that while they are cooperating with “Latvijas dzelzceļš” and awaiting the requested information, no legal actions are currently being taken regarding this specific request for compensation.
A History of Infrastructure Conflict
This latest dispute is part of a long-standing conflict regarding a 19-kilometer railway section connecting the “Orlen Lietuva” oil refinery in Mažeikiai to Rengė. The section was dismantled in 2008, leading to years of legal and financial friction between Lithuania and Latvia.
In 2018, Latvian railway entities “Latvijas dzelzceļš” and “LDz Cargo” demanded €82.32 million in compensation with 6% interest for losses incurred between 2009 and 2017. At that time, “Latvijas dzelzceļš” claimed losses of €56.92 million, while “LDz Cargo” claimed €25.4 million.
The 2018 demands were met with strong opposition from the Lithuanian government. Then-Prime Minister Saulius Skvernelis described the claim as lacking legal basis, while then-Transport Minister Rokas Masiulis characterized the move as a “political game” occurring before elections.
Legal Penalties and Restoration
The European Commission initially imposed a €27.87 million fine on “Lietuvos geležinkeliai” in 2017 for the dismantling. Following an appeal, the EU General Court reduced this fine to €20.069 million in November 2020.
Despite the legal battles, the infrastructure was addressed. “Lietuvos geležinkeliai” restored the section at a cost of €10 million by the end of 2019. Freight trains resumed operations in early 2020, allowing “Orlen Lietuva” to transport oil products to Latvia, where they are handed over to Latvian railways at the border.
Potential Next Steps
The situation could evolve as “LDz Cargo” finalizes its own damage calculations, which may lead to a second formal claim. If “Latvijas dzelzceļš” continues to withhold the methodology for its €32.77 million demand, the dispute may remain in a state of deadlock or could potentially move toward formal legal proceedings.
Frequently Asked Questions
What is the current amount being claimed by “Latvijas dzelzceļš”?
The most recent claim received by LTG on September 4, 2025, is for €32.77 million for lost profits and interest.
Why was the railway section dismantled and what were the consequences?
The 19km section from Mažeikiai to Rengė was dismantled in 2008. The EU General Court later found that “Lietuvos geležinkeliai” abused its dominant market position because it could not prove the dismantling was immediately necessary.
Has the railway section been restored?
Yes, the section was restored for €10 million by the end of 2019, and freight trains began running again in early 2020.
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