Baltic States sever electricity trade with Belarus

They have ealier imposed a travel ban on Alexander Lukashenko and 29 Belarusian officials.

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Lithuania, Latvia, and Estonia have decided to cease electricity trade with Belarus after the launch of the nuclear power plant in Ostrovets.

The three countries have reached an agreement on how they will proceed with electricity trade with third countries after the launch of the new Belarusian NPP, European Pravda reports.

"According to the agreement, the countries will stop trading in electricity with Belarus after the launch of the nuclear power plant. For control purposes, a system of certificates on the electricity origin will be introduced," the report says.

It is noted that the volume of trade will reduce in the Russia-Latvia direction.

Read alsoBaltic States declare Belarus' Lukashenko persona non grataTo this end, the residual capacity from internal trade between the Baltic states will be used.

Electricity trade between Lithuania and the Russian exclave of Kaliningrad will continue at its current level.

Prospects for electricity trade: background

In general, the volume of electricity trade between the Baltic States and third countries may be halved.

They also agreed to introduce a tariff for the use of common infrastructure. This should happen at the end of the first quarter of 2021 – until then, Latvia and Lithuania are supposed to pass legislation required (in Estonia it has already been enforced).

When the new agreement starts working

The new deal will be in effect until the end of 2025, when the Baltic States plan to synchronize their energy grids with that of Europe.

In February 2020, the Baltic states pledged to sign a declaration of intent to cease electricity purchases from the Ostrovets NPP, which is now at the final stretch of construction.

Lithuania's position on energy trade

Lithuania says the new Belarusian NPP being constructed just 50 km from Vilnius is a potential hazard, and that it could be used by the Kremlin as an instrument of political pressure on both Belarus and the Baltic States.

Latvia's stance

Latvia for some time disagreed with the idea to sever electricity trade, which led to some tensions with Lithuania. In August, however, Riga joined the common move to cease trade in electricity with Belarus once the NPP launches.

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