AGP Executive Report

Industrial Technology: Avnet Silica has expanded its EMEA distribution deal with Lithuanian maker Teltonika Networks, covering industrial routers, modems, gateways and switches. Agrifood Investment: AB Akola plans €52 million in investment for 2026–27, including poultry-processing upgrades, dairy automation and better grain handling. Environmental Accountability: Grigeo group president Gintautas Pangonis was convicted in the Curonian Lagoon pollution case; Grigeo Klaipėda was fined €2 million. The ruling can be appealed. Energy: Lithuania is planning reforms to revive renewables growth. Ignitis Renewables has also opened its third solar plant in Latvia, with a 215 MWh battery project planned for the site. Baltic Defence Supply: Lithuania is among five countries procuring Finnish Blocker naval mines. A new containerized system could let patrol ships lay mines without permanent modifications.

Energy and Trade: Lithuania and Azerbaijan discussed closer energy and trade ties, with Vilnius and Baku looking to expand economic cooperation. Clean-Energy Finance: Green Genius raised €65 million through a green bond to refinance loans and support its solar, wind, biomethane and battery portfolio, targeting more than 1 GW of operating capacity by 2030. Textile Recycling: Lithuanian mill Utenos Trikotažas joined Reju’s network of six mills developing fabrics from regenerated polyester, linking textile recycling with industrial production. Business Costs: Lithuanian non-household gas prices fell 12.5% year on year in the first half of 2026, among the EU’s steepest declines. Renewables: Lithuania is advancing broad reforms aimed at reviving renewable-energy growth.

Energy Costs: Lithuanian businesses’ gas prices fell 12.5% year on year in the first half of 2026, among the EU’s steepest declines. But industrial producer prices in Lithuania rose 19% in September, one of the bloc’s biggest increases. Technology: Vilnius-based Oxylabs ranked 17th among Europe’s long-term growth champions, after a decade of profitable growth serving more than 15,000 businesses. Textiles: Utenos Trikotažas is among six mills working with Reju to develop fabrics made from recycled polyester, linking textile recycling plans with manufacturers. Ports and Trade: Lithuania has no plans to reopen its ports to Belarusian potash, despite a push by a US envoy that officials say does not reflect wider Washington policy.

Industrial Costs: Lithuania had the EU’s highest annual inflation in October at 6.1%. Industrial producer prices rose 19% year on year in September, adding to cost pressures for manufacturers. Energy Storage: A 120 MWh battery project in Lithuania has passed factory acceptance testing, with equipment ready for shipment. Energy Policy: The government has asked ministries to assess a possible windfall tax on energy companies by Nov. 9, while renewables reforms aim to revive investment. Trade and Manufacturing: Lithuanian firms are eyeing opportunities in electronics, lasers and fintech from a proposed India-EU trade pact; Hanwha is also exploring local air-defence production partnerships. Infrastructure: Rail Baltica is seeking a further €357.5 million in EU funding.

Energy Policy: Lithuania’s Seimas approved reforms to revive renewable investment, letting developers extend project timelines by up to four years and switch between generation, storage and electricity use. Separately, the prime minister has asked ministries to assess a possible windfall tax on energy companies, with proposals due by November 9. Costs and Inflation: Lithuania recorded the EU’s highest October inflation estimate at 6.1%, as eurozone energy prices surged. Business gas prices, however, fell 12.5% year on year in Lithuania in the first half of 2026. Trade and Industry: Lithuania sees the upcoming India-EU trade pact as an opportunity for local electronics, laser and fintech firms. Innovation: Vilnius-based Sort A Brick unveiled a machine that sorts up to 3,600 used LEGO bricks an hour and is expanding sales of refurbished sets across Europe. Transport Links: Reconstruction at the Kamenny Loh crossing on the Belarusian border starts November 5 and is expected to run until 2029; authorities say vehicle capacity will be maintained. Rail Baltica is also seeking an additional €357.5 million in EU funding.

Renewables: Lithuania’s Seimas approved reforms to revive stalled clean-energy investment, allowing developers to extend or adapt projects and cutting network guarantees in half. Trade: Lithuania is backing the expected India-EU trade pact, with firms eyeing opportunities in electronics, lasers, AI and fintech as the agreement moves toward signing in December. Rail Baltica: The project is seeking €357.5 million in EU funding for 2027–30; Lithuania’s share would support power links for railway operations. Business costs: Gas prices for Lithuanian non-household consumers fell 12.5% year on year in the first half of 2026, among the steepest declines in the EU. Defence industry: Hanwha has signed four deals with Lithuanian firms and is exploring air-defence production partnerships; separate plans include a Rheinmetall ammunition plant and joint Leopard tank servicing and assembly.

Trade and Technology: Lithuania’s ambassador to India says the planned EU-India free-trade agreement could open opportunities for Lithuanian firms in electronics, telematics, lasers, fintech and other sectors. The deal is expected to be signed in December, with Lithuania hoping to advance its implementation during its EU Council presidency in 2027. Rail Baltica: The project is seeking €357.5 million in EU funding for 2027–2030; Lithuania’s share would support electricity infrastructure for the future railway. Banking Technology: Mano Bank has partnered with Lithuanian RegTech firm AMLYZE to automate and centralize compliance checks as the bank expands. Economic Outlook: Lithuania’s GDP fell 1% in the third quarter, the steepest decline among EU countries with available data. Defence Industry: Hanwha has signed four deals with Lithuanian firms and is exploring local air-defence production partnerships.

Trade Opportunities: Lithuania’s ambassador to India says the expected EU–India free-trade deal could open new markets for Lithuanian firms in electronics, telematics, lasers, chemicals, plastics and high-value food. She hopes it will take effect during Lithuania’s EU Council presidency in the first half of 2027. Economic Outlook: Eurostat’s preliminary figures show Lithuania’s GDP fell 1% in the third quarter from the previous quarter, even as the euro area grew 0.4%. Financial Technology: Mano Bank has partnered with Lithuanian RegTech firm AMLYZE to automate and centralize transaction monitoring, customer screening and risk management as the lender expands. Telecom Services: New rules require providers to notify customers immediately and free of charge about service interruptions, and report large-scale outages to regulator RRT within two hours. Defence Industry: South Korea’s Hanwha signed four agreements with Lithuanian firms and is exploring local air-defence production partnerships.

Telecom Resilience: New rules effective Nov. 1 require Lithuanian communications providers to notify customers immediately and free of charge about service outages, and report large-scale disruptions to regulator RRT within two hours. Defence Industry: Lithuania has received a mobile Thales GM200 radar to detect artillery fire and drones. Hanwha has also signed four deals with Lithuanian firms and is exploring local air-defence production partnerships. Energy Security: A NordBalt power-link outage left Lithuania’s grid stable, while Ignitis is seeking to delay its 700MW Curonian Nord project. Economic Signals: Lithuania’s GDP contracted 1% in the third quarter, the sharpest fall in the EU. Lithuanian milk prices were down 26% year on year, among the bloc’s steepest declines.

Defence Technology: Lithuania has received a Thales GM200 mobile radar to detect artillery fire and FPV drones, strengthening battlefield coordination with NATO allies. Separate trials in Latvia tested cross-border drone and data-system links. South Korea’s Hanwha also signed four deals with Lithuanian firms and is exploring air-defence production partnerships. Infrastructure Security: Lithuanian authorities have linked arson attacks on Starlink ground stations across three NATO countries to one network and filed terrorism charges. A fault disconnected the NordBalt power link with Sweden, but backup reserves kept Lithuania’s electricity supply stable. Economic Outlook: Lithuania’s GDP contracted 1% in the third quarter, the steepest decline in the EU. Dairy: EU milk prices fell nearly 20% year on year, with Lithuanian farm-gate prices down 26%, among the bloc’s sharpest drops.

Power Grid: The NordBalt link between Lithuania and Sweden went offline after a converter-station failure, but Litgrid activated reserves and said supply remained stable. Energy Storage: AlphaESS completed a 60MW/120MWh battery storage project in Jonava, adding capacity to Lithuania’s energy system. Defence Manufacturing: Hanwha is exploring Lithuanian air-defence production partnerships and has signed four deals with local firms. Across the Baltics, defence companies are growing, but future gains depend on developing higher-value products and export markets. Infrastructure: Rail Baltica is seeking £300 million in EU funding to push construction forward, while political delays remain a concern. Economic Outlook: Lithuania recorded the EU’s steepest Q3 contraction, with GDP down 1.0% from the previous quarter. Dairy: Lithuanian farm-gate milk prices fell 26% year on year, among the sharpest declines in the EU.

Research and Defence: At a Vilnius University conference, EU Defence and Space Commissioner Andrius Kubilius urged universities to contribute to advances in AI, space and European defence. Economic Outlook: Lithuania’s GDP contracted 1% in the third quarter, the steepest fall among EU countries in Eurostat’s preliminary estimate. Energy: The NordBalt link with Sweden went offline after a converter-station failure; Litgrid activated reserves and said supply to Lithuanian consumers remained stable. Dairy: EU farm-gate milk prices fell nearly 20% year on year in August, with Lithuania among the hardest-hit countries at a 26% decline. Defence Manufacturing: South Korea’s Hanwha signed exploratory agreements with four Lithuanian firms to assess potential roles in producing and integrating its 40mm air-defence system; the work is not yet a production commitment.

Economic Outlook: Lithuania recorded the EU’s steepest quarterly contraction, with GDP down 1% in Q3, Eurostat’s preliminary estimate shows. Power Supply: The 700 MW NordBalt link to Sweden went offline after a converter-station failure; Litgrid activated reserves and reported no disruption to Lithuanian consumers. Defence Manufacturing: South Korea’s Hanwha Aerospace signed four memoranda with Lithuanian firms to explore potential work on its 40mm air-defence system, including vehicle integration and engineering. The agreements are exploratory, not production contracts. Dairy: Lithuanian farm-gate milk prices fell 26% year on year in August, among the EU’s sharpest declines, as milk deliveries across the bloc rose.

Dairy: Lithuanian farm-gate milk prices fell 26% year on year in August, among the steepest declines in the EU, even as EU milk collection rose 3% in the first eight months of 2026. Defence Industry: The Baltic defence sector is expanding, but future growth depends on developing higher-value products and exports. Lithuania aims to triple defence exports from 2025 levels and raise sector value added above €1 billion; Hanwha Aerospace has signed four memoranda with Lithuanian firms to explore potential work on its air-defence system, not yet contracted production. Energy: The 700 MW NordBalt link between Lithuania and Sweden disconnected after a converter-station failure. Litgrid said reserves kept supply stable, and Sweden reported no sign of external interference. Economic Outlook: Lithuania’s GDP contracted 1% quarter on quarter in Q3, the sharpest decline among EU countries reporting figures, though it was up 2.3% year on year. Transport Infrastructure: Rail Baltica is seeking £300 million in EU funding to advance construction across the Baltic states, while project leaders have criticised delays in political decisions.

Defence Manufacturing: Hanwha Aerospace signed four memoranda with Lithuanian firms to explore engineering and integration work for its 40mm air-defence system. The agreements are exploratory, not production contracts. Shipbuilding: The Lithuanian Navy awarded Damen a contract for a 67.3-metre search-and-rescue and pollution-response vessel, which will replace an existing unit. Energy: The 700 MW NordBalt link to Sweden was disconnected after a converter-station failure. Grid reserves were activated, but supply to Lithuanian consumers remained stable; the operator said there was no indication of external interference. Economic Outlook: Lithuania’s GDP fell 1% quarter on quarter in the third quarter, the sharpest decline in the EU, while growing 2.3% year on year, according to preliminary Eurostat data.

Economic Outlook: Lithuania’s GDP fell 1% quarter on quarter in Q3, the sharpest decline in the eurozone, although it was up 2.3% year on year. Energy Security: Lithuania endorsed a European plan to release strategic oil reserves, including diesel, to ease supply concerns ahead of winter. Digital Infrastructure: Point One Navigation and Baltic Towers will install precision-positioning stations across their roughly 2,700 sites in Lithuania, Latvia and Estonia by year-end, supporting applications such as construction, farming and drones. Clean Energy: AlphaESS has completed a 60 MW/120 MWh battery storage project in Jonava, adding capacity to Lithuania’s grid. Transport: Rail Baltica has begun installing its first high-speed rail turnouts on the project’s most advanced Lithuanian section.