Vilnius, September 25 (ELTA) – Former environment minister Povilas Poderskis is set to become the new chancellor of the Ministry of Environment, the ministry told ELTA Thursday.

Poderskis, who led the ministry until Thursday, has accepted the offer to take over as chancellor but must first obtain clearance from law enforcement agencies.

“Poderskis, in his capacity as minister, has already received the required certificate, but it needs to be revised, which will be done in the nearest future,” the ministry said.

If approved, he would replace Sigita Vasiljevaitė, who has served as chancellor since December 2024.

The news about the appointment comes after the 20th Cabinet, led by Prime Minister Inga Ruginienė, was sworn in at the Seimas on Thursday. Kastytis Žuromskas, formerly deputy minister, succeeded Poderskis as environment minister.

Vilnius, September 25 (ELTA) – A major Lithuanian film festival, Scanorama, said Thursday it is refusing the patronage of President Gitanas Nausėda in protest against his decision to appoint a representative of the Nemunas Dawn party as minister of culture.

European Film Festival Scanorama announced the move in a statement on Facebook, saying it is opposing a political force that is “incompatible with democratic values and respect for culture.”

“The cultural community is protesting today against the decision to entrust the Ministry of Culture to a political force that is incompatible with democratic values and respect for culture. The protest shows that the voice of cultural figures has been ignored,” the statement said.

It added that presidential patronage had previously symbolised “real support for culture” and a “commitment to creators and the community.”

“When this commitment disappears, patronage loses its meaning,” the festival said.

Scanorama also reiterated its belief that cinema plays a vital social role, saying it helps “cultivate public sensitivity, shape critical thinking, preserve memory, and strengthen resilience.”

“By refusing the president’s patronage, Scanorama is choosing loyalty to its values and to the people who are defending the future of culture in Lithuania today,” it said.

A protest against the Nemunas Dawn and its new minister of culture, Ignotas Adomavičius, took place outside of the Presidential Palace in Vilnius on Thursday morning. Nearly a thousand people gathered to demand that a competent professional representing their interests would lead the Ministry of Culture.

In addition, a petition against Adomavičius’ appointment as culture minister was signed by more than 50 thousand people in several days.

Vilnius, September 25 (ELTA) – The European Commission’s executive vice-president for cohesion and reforms, Raffaele Fitto, says defence and national security are a key priority of the European cohesion programme, and expects the Pact for the Eastern Border Regions to be approved by the end of this year.

All member states will be able now to adapt their EU cohesion programmes to new priorities that include water, housing, competitiveness, energy and, most importantly, defence, the EU official told a press conference at the Medininkai border post.

The adoption of the Pact for the Eastern Border Regions is important not only for the security of the region, but also for the redistribution of funds allocated to it, according to Fitto.

Fitto also said his recent tour of Eastern Europe help to better understand the security situation in the region.

Lithuania expects clear financial commitments from EU countries in the new Eastern Border Regions Pact, Deputy Finance Minister Januš Kizenevič told reporters in Medininkai.

“A very specific promise (by the Commission – ELTA) concerns the pact, (...) which is a sign of solidarity for us that the pact will be ready by the end of the year. But at the same time, we hope that this will not only be a sign of solidarity, but also a financial commitment to support the regions bordering Russia and Belarus, (...) there will be a very specific action plan, agreed with the European Commission,” the deputy minister said.

During talks on the EU’s 2028–2034 financial framework, Lithuania will push to secure maximum funding for border protection as early as possible, he added.

Vilnius, September 25 (ELTA) – Deputy Minister of Finance Januš Kizenevič on Thursday participated in the high-level discussion ‘Do We Respond to the Priorities? Cohesion Policy in the New EU Reality’, the ministry said.

In his statement at the event, the deputy minister noted that the European Union (EU) member states bordering aggressor countries face various economic, social and resilience challenges that are much more relevant for the countries of the region than for the rest of the EU

“With Russia’s unprovoked war in Ukraine, security has become a crucial concern for the entire Community. However, the EU’s eastern border Member States bordering the aggressor are experiencing exceptional challenges – from hybrid threats, increased defence spending to decreased foreign investment. Therefore, Cohesion Policy must respond to the new geopolitical reality and provide additional support for the EU’s eastern border Member States,” Deputy Minister of Finance Kizenevič said. 

“We see that Cohesion Policy is changing, its priorities are expanding to include defence and security, and we welcome it. Cohesion Policy is entering a new era, the one we have not yet encountered,” he underlined.

Living on the eastern border of the EU leads to increased spending on national-level security and resilience measures, such as civil protection and preparedness, defence, and the preservation of critical infrastructure. 

The deputy minister observed that a significant challenge arises at the national level to rationally distribute investments between those intended for increasing security and other important areas, such as increasing the competitiveness and resilience of the country’s economy, promoting innovation, digital transformation, and others.

In the new Multiannual Financial Framework (MFF) for 2028-2034, the European Commission has proposed a fundamental overhaul of the EU budget, aiming to significantly increase the EU’s capacity to implement key policies and address new and emerging challenges. The EC proposes to merge the previously separate policies – Cohesion, Agriculture, Fisheries, Internal Security, Social Climate and International Cooperation (Interreg) – into one single fund. It is emphasised that the competitiveness of the entire EU remains an important concern. 

“While investing in Lithuania’s security, we must not forget that our ability to compete in Europe and the world requires cultivating local talents, promoting breakthrough technologies, creating favourable conditions for businesses to borrow and attract investments,” the deputy minister stated.

Vilnius, September 25 (ELTA) – The Seimas on Thursday gave initial backing to a proposed air transport agreement with Saudi Arabia, aimed at boosting bilateral cooperation and enabling regular flights between the two countries.

The deal, proposed by the Ministry of Transport and Communications, outlines the framework for operating scheduled flights, issuing and revoking permits, setting tariffs and ensuring aviation and flight safety.

It also covers the mutual recognition of certificates and licences, ground handling services, and aircraft leasing, the ministry said.

In the preliminary vote following the bill’s presentation, 51 MPs voted in favour, with no abstentions or objections.

The governments of Lithuania and Saudi Arabia signed the agreement on cooperation in air transport in December 2024 and the European Commission approved it in April 2025.

For the agreement to take effect, Saudi Arabia will have to ratify it as well.

Vilnius, September 25 (ELTA) – Lithuania’s Pieno žvaigždės group of dairy companies generated an unaudited net profit of EUR 2.4 million in the first six months of this year, significantly down from EUR 6.2 million in January-June 2024, according to a statement on the Nasdaq Vilnius exchange released Thursday.

The group’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the first six months of 2025 was EUR 5.9 million, compared to EUR 9.7 million in the previous year.

Preliminary unaudited data show that the sales revenue of AB Pieno žvaigždės in the first six months of 2025 was EUR 108.7 million, or 6.6% more than a year ago.

AB Pieno žvaigždės is engaged in the production and sales of dairy products to retail stores directly and through distributors.

Vilnius, September 25 (ELTA) – Operations at Vilnius Airport were temporarily suspended Thursday following a possible drone sighting, a spokesman for Lithuanian Airports (LTOU) has said.

“At 3:57 p.m., air traffic controllers received reports of a suspicious object near the airport, prompting a temporary halt to air traffic,” Tadas Vasiliauskas told ELTA in a written comment.

Flight restrictions were lifted at around 4:11 pm local time, and operations have since returned to normal.

“The incident caused minimal disruption, affecting the schedules of four flights at Vilnius Airport. No flights were cancelled or diverted,” the LTOU representative added.

Similar drone-related suspensions occurred at the airport on 9 and 11 September.

Two drones crossed into Lithuania from Belarus in the summer, raising concerns about the existing airspace security measures.

On 28 July, a drone flying from Belarus violated Lithuanian airspace. It flew in a straight line above Vilnius and was later found in Gaižiūnai training area in Jonava district, some 100 km from the Belarusian border. Prosecutors said it was carrying explosives.

Another Gerbera drone flew from Belarus to Lithuania on 10 July and crashed around 1 km from the Belarusian border.

Vilnius, September 25 (ELTA) – In August 2025, Lithuanian resident (household) deposits increased by EUR 25.5 million, or 0.1%, over the month, and interest rates on new business of deposits declined by 0.03 percentage points, according to the monetary financial institution (MFI) balance sheet and interest rate data released by the central bank on Thursday.

Last month, corporate (non-financial corporation) deposits grew by EUR 317.7 million, or 3.0%, and interest rates on new business of deposits went up by 0.03 percentage points.

Loans to Lithuanian residents granted by credit institutions grew by EUR 204.9 million, or 1.2%, whereas interest rates on new business of loans increased by 0.17 percentage points.

Loans for consumption granted to Lithuanian residents went up by 2.5% month on month, while interest rates on new loans for consumption rose by 0.20 percentage points.

Loans to Lithuanian corporations grew by EUR 269.5 million, or 2.0%, and interest rates on new business of loans rose by 0.37 percentage points.

Deposits of Lithuanian residents with credit institutions rose by EUR 236.9 million, or 0.5%, over the month (their annual growth rate was 11.6%). Household deposits grew by EUR 25.5 million, or 0.1%, while non-financial corporation deposits went up by EUR 317.7 million, or 3.0% (their annual growth rates stood at 11.8% and 7.3% respectively). At the end of the month, household and non-financial corporation deposits amounted to EUR 26.5 billion and EUR 10.9 billion respectively. In August, financial sector deposits contracted by EUR 4.2 million, while general government deposits decreased by EUR 102.1 million. At the end of the month, these deposits amounted to EUR 1.5 billion and EUR 5.9 billion respectively.

Overnight deposits of Lithuanian households and non-financial corporations with credit institutions rose by EUR 71.9 million and EUR 349.2 million respectively, or 0.4% and 4.0% respectively, over the month. At the end of the month, the outstanding amounts of overnight deposits of these sectors stood at EUR 18.5 billion and EUR 9.1 billion respectively. Household and non-financial corporation deposits with agreed maturity with credit institutions declined by EUR 52.5 million and EUR 33.6 million, or 0.7% and 1.9% respectively over the month. The outstanding amounts of these deposits stood at EUR 7.7 billion and EUR 1.7 billion respectively.

Loans granted by credit institutions to Lithuanian residents increased by EUR 489.2 million, or 1.5%, month on month (their annual growth rate was 14.7%). Loans to Lithuanian non-financial corporations and households went up by EUR 269.5 million and EUR 204.9 million, or 2.0% and 1.2%, respectively over the month (their annual growth rates stood at 17.9% and 14.1% respectively). Loans to the financial sector and general government grew by EUR 6.9 million and EUR 7.9 million respectively. At the end of August 2025, loans to these sectors amounted to EUR 13.6 billion, EUR 17.5 billion, EUR 1.7 billion and EUR 395.8 million respectively.

Loans to Lithuanian households for house purchase, consumption and other purposes granted by credit institutions rose by EUR 161.9 million (1.1%), EUR 41.4 million (2.5%) and EUR 1.6 million (0.1%) respectively over the month. In late August, the outstanding amounts of these loans totalled EUR 14.4 billion, EUR 1.7 billion and EUR 1.4 billion respectively; their annual growth rates stood at 12.6%, 38.6% and 6.3% respectively.

Interest rates on new business of loans granted to households by credit institutions rose by 0.17 percentage points to 5.30%. Interest rates on loans for house purchase declined by 0.02 percentage points, while those on loans for consumption and other purposes increased by 0.20 percentage points and 0.01 percentage points respectively. In August 2025, interest rates on these loans comprised 3.68%, 8.58% and 6.17% respectively.

Interest rates on new business of household deposits with agreed maturity held with credit institutions decreased by 0.03 percentage points month on month to 1.88%. Interest rates on deposits with agreed maturity of up to 1 month, from 6 months to 1 year and from 2 years onward increased by 0.01%, 0.05% and 0.14% respectively, whereas those on deposits with agreed maturity from 1 to 6 months and from 1 to 2 years declined by 0.04 and 0.28 percentage points respectively. Interest rates on these deposits comprised 1.48%, 2.20%, 2.76%, 1.72% and 2.10% respectively in February 2025.

Interest rates on new business of loans to non-financial corporations grew by 0.37 percentage points month on month to 4.93%. Interest rates on new business of loans up to EUR 1 million and over EUR 1 million rose by 0.16 and 0.41 percentage points respectively. In August, interest rates on these loans totalled 4.73% and 4.96% respectively.

Interest rates on new business of non-financial corporation deposits with agreed maturity rose by 0.03 percentage points to 1.92%. Deposits with agreed maturity of up to 1 year went up by 0.05%, while those from 1 year onwards declined by 0.63%. In August 2025, interest rates on these deposits comprised 1.93% and 1.51% respectively.

Riga, September 25 (LETA-ELTA) – On Thursday, a memorandum of understanding was signed in Germany on the establishment of a munitions plant in Latvia by German military industry company Rheinmetall, Prime Minister Evika Silina’s (New Unity) advisor Anna Udre informed LETA.

According to the Economics Ministry, a joint venture will be established for construction of the plant. The project is expected to raise more than EUR 200 million in investment, while the plant’s exports could exceed EUR 3 billion in ten years.

Construction of the plant will start in spring 2026, and the plant will become operational a year later. The project was endorsed by the Latvian government on Tuesday, 23 September, after the government heard a report on the establishment of a munitions plant in Latvia.

At the signing of the memorandum, Silina said, “This is a historic moment for Latvia, our defence sector, and cooperation between Latvia and Germany. The memorandum affirms our readiness to build a long-term partnership with one of the most influential defence manufacturers in the world."

“The new factory will significantly strengthen the security of ammunition supplies in the Baltic region and Northern Europe. At the same time, it is also an opportunity to open a new factory in Latvia, bringing technological knowledge and enhancing our economic potential,” Silina emphasised after the signing ceremony in Hamburg.

During her meeting with Rheinmetall CEO Armin Papperger, the prime minister noted that today lays the foundation for a long-term partnership that will serve the security interests of both Latvia and allies. At the same time, Silina acknowledged that the memorandum is only the first step, and much work lies ahead to turn this plan into reality.

“The memorandum of understanding signed today is the result of long-standing efforts - I have personally met with the company’s leadership several times to discuss potential cooperation opportunities,” said Silina.

The signed memorandum of understanding provides for closer cooperation between the Latvian and German defence industries and paves the way for the establishment of an ammunition production line in Latvia. It was signed between Rheinmetall and the state-owned company National Defence Corporation (Valsts Aizsardzibas Korporacija).

State Defence Corporation board member Ingrida Kirse says that Latvia has all the prerequisites for establishing the munitions production plant, as the project combines several key components.

“These include the task of National Defence Corporation to meet the needs of the National Armed Forces and develop the Latvian defence industry by building production capacities, Rheinmetall’s long-standing experience in the industry and the company’s know-how, as well as high standards and international recognition. This synergy is the basis for a strong partnership to develop the industry and strengthen security in Latvia and the region,” says Kirse.

The Economics Ministry points out that the munitions plant project will strengthen the industry and promote innovations. It will also benefit the economy through creating new jobs and export opportunities, and contribute to closer integration of Latvia into the European Union’s defence industry.

Vilnius, September 25 (ELTA) – The 20th Government of the Republic of Lithuania has been sworn in in the Seimas, with Prime Minister Inga Ruginienė and her Cabinet of Ministers taking office.

“I swear to be faithful to the Republic of Lithuania; swear to respect and uphold its Constitution and laws and to protect the integrity of its lands; swear to strengthen, to the best of my ability, the independence of Lithuania, and to conscientiously serve my Homeland, democracy, and the welfare of the people of Lithuania,” Ruginienė said when holding her hand on the Constitution.

The swearing-in ceremony followed MPs’ approval of the new Government’s programme.

The event was notably snubbed during the oath of Ignotas Adomavičius, Nemunas Dawn’s nominee for culture minister, as opposition Liberal Movement MPs turned their backs on him, while most Conservative and Democrat lawmakers walked out of the chamber.

The Government was formed by a ruling coalition consisting of the Social Democrats, the Nemunas Dawn party and a joint political group of the Farmers and Greens (LVŽS) and the Electoral Action of Poles in Lithuania-Christian Families Alliance (LLRA-KŠS).

The composition of the 20th Government: Prime Minister Inga Ruginienė, Minister of the Environment Kastytis Žuromskas, Minister of Economy and Innovation Edvinas Grikšas, Minister of Energy Žygimantas Vaičiūnas, Minister of Finance Kristupas Vaitiekūnas, Minister of National Defense Dovilė Šakalienė, Minister of Culture Ignotas Adomavičius, Minister of Social Security and Labor Jūratė Zailskienė, Minister of Transport and Communications Juras Taminskas, Minister of Health Marija Jakubauskienė, Minister of Education, Science, and Sport Raminta Popovienė, Minister of Justice Rita Tamašunienė, Minister of Foreign Affairs Kęstutis Budrys, Minister of the Interior Vladislav Kondratovič, Minister of Agriculture Andrius Palionis.