Lithuanian ambassador: TRIPP to open new prospects for investment, logistics – INTERVIEW

On January 10, 2025, during the ceremony of presenting credentials to President of Azerbaijan Ilham Aliyev, the newly appointed Ambassador of Lithuania to Baku Kęstutis Vaškelevičius emphasized that the Lithuanian head of state Gitanas Nausėda highly appreciates the important role that Azerbaijan plays in the international arena.

In an interview with Report, the ambassador spoke about his plans and approaches during his diplomatic mission in Azerbaijan, highlighted the similarities in the historical destinies of Azerbaijan and Lithuania in becoming independent states, and also emphasized Azerbaijan's strategic role as a country with an advantageous geopolitical position, opening wide prospects for the development of transport and logistics hubs between different regions.

- Nine months have passed since you presented your credentials to the President of Azerbaijan Ilham Aliyev. What priorities have you outlined for strengthening relations between the two countries?

- I believe that one of the key priorities for a diplomat is to intensify political consultations, regular visits and cooperation between leaders, ministers, government representatives and various institutions, as well as strengthening contacts between citizens of the two countries. These regular interactions are extremely important as they contribute to the development of mutual understanding.

Moreover, through frequent contacts, it is possible not only to discuss specific projects but also to implement real steps that bring tangible benefits to both sides. In addition to the political aspect, economic and cultural cooperation are equally important. Especially here in Azerbaijan, I have felt the great value that local residents place on cultural projects and cultural heritage.

When I first came to Baku and walked the streets of the city, I was pleasantly surprised by how many monuments and memorial plaques are installed on houses where distinguished cultural figures lived. This shows that people remember and value their cultural heritage. Respect for culture directly affects the work of our embassy: we actively participate in organizing various cultural events and exchanges, as this is really important for both sides.

Additionally, contacts between people in educational and sports fields are significant. All these areas are becoming priorities for our embassy, and I see them also as key in my activities as the Ambassador of Lithuania to Azerbaijan.

- How do you assess the current level of economic cooperation between Azerbaijan and Lithuania? In which areas is there potential for growth?

- Looking at statistics, we can note positive dynamics in trade and economic relations between our countries. Since 2019, that is, the year before the COVID-19 pandemic, trade between Azerbaijan and Lithuania has increased by 70%. In the field of services, the growth was even more significant, and what is especially important - it is a consistent growth.. That is, we are not talking about a one-time jump, but about a progressive positive trend..

Our trade turnover is about $150 million, which is not too bad. But most importantly - it is pleasant to note that the products that Lithuanian and Azerbaijani businesses export are really in demand and appreciated in both countries. For example, Lithuania supplies dairy products to Azerbaijan - in Baku shops you can find Lithuanian cheese, yogurt and other products that are valued by customers. In turn, Azerbaijani juice, fruits, vegetables and nuts are highly valued in Lithuania.

Such mutual demand for products is especially gratifying, as it reflects the sincere interest and trust of consumers on both sides. We also have established trade in chemical products, furniture and other goods that are in demand in everyday life. The consistent growth in trade gives us optimism and allows us to count on further development and expansion of trade in the future.

- The Intergovernmental Commission on Economic Cooperation (IGC) between Azerbaijan and Lithuania last met more than two years ago. When and where is the next meeting of the commission planned, and what issues will be discussed?

- Azerbaijan and Lithuania have already held seven meetings of the intergovernmental commission, which confirms the effectiveness of this format of cooperation.. Work on organizing the IGC is ongoing. This process takes time, since the commission is not a meeting of just one minister, but the participation of several heads of ministries or their deputies. Therefore, careful preliminary planning is necessary. Preparation for the IGC meeting is a joint work of diplomats from both countries, including our embassy.

- Previously, you stated that Azerbaijan and Lithuania are discussing the launch of direct air service. Is there any progress on this issue?

- As of today, unfortunately, there is no tangible progress yet, but discussions continue. First of all, this is certainly a commercial decision, but we, as representatives of the governments, support it and are ready to provide maximum assistance for its successful implementation.

- How many documents are currently being prepared for signing and what areas do they cover?

- We have already signed a number of key documents in economy, trade, finance, education, and science., But some of them need updating, as they were concluded 10-15 years ago. We see both the necessity and practical interest of both parties in ensuring that some of these documents are updated and prepared anew.

- Is there interest from Lithuanian companies in carrying out transportation along the Middle Corridor?

- Since my arrival to Azerbaijan we already hosted, the director general of the Port of Klaipeda Algis Latakas , which isone of the largest ports in the region (Klaipeda port is the largest in the Baltic states; in 2023 it handled 32.7 million tons of cargo, 9% less than in 2022 - ed.) The very fact of this visit already demonstrates Lithuania's interest in the development of the Trans-Caspian International Transport Route (TITR, or Middle Corridor).

At the political level, we also support the Middle Corridor, as it is an alternative route that allows bypassing aggressor states, unstable countries, those who use the economy as a political tool. The ability to have alternative routes is important for Lithuania. Additionally, the Middle Corridor is valuable from a business perspective: it improves logistics efficiency, saves delivery time, and reduces costs. I am confident that this route has development prospects, and Lithuanian companies and ports are showing active interest in it.

- What plans are there for cooperation between the ports of Klaipeda and Baku, and how might this affect the development of trade and economic relations between the two countries?

- Both ports have very advantageous locations and can serve as an effective platform for accessing larger markets. Baku is a key port in the South Caucasus, with the possibility of further access to Central Asia and even beyond. The Port of Klaipeda, in turn, is excellently positioned as an access point to the markets of Scandinavia and Germany. Both ports can be practically connected by rail, which allows delivering cargo to Klaipeda, and from there sending it by sea transport to Scandinavia, Great Britain, Germany, and other countries. I see huge potential in this, and business circles are also showing active interest in using these routes. For example, the Port of Klaipeda already delivers goods from Norway and Sweden to Azerbaijan, and there is a desire to deepen opportunities in this direction.

- Today, one of the main topics of discussion is the launch of the Zangazur Corridor. How interesting would this corridor be for Lithuania and Lithuanian companies? In general, how does official Vilnius assess the current situation in the South Caucasus region?

- From a political perspective, what Armenia and Azerbaijan have achieved, having initialed a peace agreement with the mediation of US President Donald Trump, is truly a significant achievement. We see that bilateral negotiations between Azerbaijan and Armenia are also yielding tangible results in terms of stability and security in the region, and we hope for the early signing of a peace treaty. This progress also stimulates growing interest from business circles, as predictability and stability are key factors for planning investments and business projects., the very fact that the TRIPP infrastructure (a 42-kilometer section of the Zangazur Corridor on the territory of Armenia) may be put into operation in the nearest future creates additional stability and predictability, which will surely interest Lithuanian businesses.

- Have you been able to visit the liberated territories of Azerbaijan? Are Lithuanian companies showing interest in participating in construction and restoration work in these territories?

- In the industrial park in Jabrayil district, there is already a Lithuanian company that started greenfield investment. It specializes in furniture production. As for me, I have already visited Karabakh three times. The reconstruction that I witnessed is truly impressive. For example, on the road from Fuzuli airport to Khankandi, we passed through five new tunnels with modern roads. What's particularly striking is that all this was built in just a year and a half. I was also impressed by the natural beauty of Karabakh and the cultural heritage of the region. This shows the enormous potential of these territories in tourism, agriculture, and the economy.

I am convinced that a prosperous, peaceful, and stable Karabakh will benefit both Azerbaijan and Armenia. I hope that over time, the wounds and pain that still remain can be healed. Lithuania had, I would say, somewhat similar history with Poland before World War II.

We really had tense and even hostile relations with Poland, and this pain was deeply felt within the country. We considered Vilnius our capital, but it was under Polish occupation, and overall about 20% of Lithuania's territory during that period was also controlled by Poland.

When we restored independence in 1990, there were discussions about how to build relations with Poland. Some could not forget the historical traumas and tragedies. But if we had remained fixated on the past, it would have been much harder for us to demonstrate the progress we achieved in joining the European Union and NATO. We made the decision to look to the future, and today Lithuania's relations with Poland are truly impressive. They have reached a strategic level: we hold joint government meetings, ensure common security, and cooperate as a family. I can already see that Azerbaijan and Armenia are taking the first steps toward a shared future. I understand that it is painful,. In our case, several generations passed before we could overcome historical differences. But I am confident – the future of the region looks very optimistic.

- I would like to talk a bit about the processes in Eastern Europe that also affect your country. Does Lithuania see the possibility of resolving the Ukrainian conflict within the next year?

- Frankly speaking, the prospect of the war ending within this period is not easy, as Russia"s war against Ukraine is deeply entrenched. We don't yet see Russia's willingness to seek peace. Nevertheless, I am almost certain that the aggressor will not win, and Ukraine will regain control over all its territory, including Crimea. The international community must stand as a unified and even with more determination to support Ukraine. Ukraine has shown tremendous resilience

Of course, this requires enormous sacrifices and efforts, but three and a half years after the full-scale invasion, Ukraine has proven its ability to resist. Ukraine is fighting also for our freedom, Ukraine is stopping aggression from spreading further into Russia"s neighbourhood.

But in the long term, I am confident: Russia's imperial ambitions will be defeated - unfortunately, the extremely high price will be paid for this. Looking at the long-term perspective, aggression and occupation don't last long. The histories of Azerbaijan and Lithuania confirm this - we have both experienced occupation. Such periods are always short-lived because it is impossible to suppress the spirit of freedom. Our countries know well the price of freedom. Let's remember, for example, the tragedy of January 20, 1990, here in Baku. You were one of the first witnesses to the fall of the Soviet empire, saw the hatred and violence against ordinary citizens. We experienced something similar a year later, on January 13, 1991, when Soviet tanks came out on the streets of Vilnius and killed peaceful civilians. Therefor, our nations understand each other quite well

On January 20 in Baku, Soviet tanks killed people while trying to impose an information blockade to prevent the world from learning about what happened. This was a common practice - cynical lies about their actions, which we see today in Russia's actions in Ukraine. It was particularly difficult to break through censorship then: the Soviet Union was still controlled by the Communist Party. However, in Lithuania, just five days later, on January 25, a small brochure about Soviet crimes in Baku - the first mini-book in history that contained reliable information about the events and received international distribution. We remember this connection and realize that our nations have very similar fates. That is why we understand each other so well in this aspect.

- How has the Russian-Ukrainian war affected Lithuania's economy, and what security-related challenges does the country face?

- Russia's aggression against Ukraine was a real shock, it shook many of us. Economically, it was also a strong blow, but, as it turned out, a temporary one. Subsequently, we managed to emerge from this situation even stronger. Already in 2022, Lithuania had a low level of dependence on Russian energy resources. And in May of the same year, we became the first European Union country to completely stop purchasing Russian hydrocarbons - no oil, no gas, no electricity.

Of course, this was not an easy path , but we were able to completely sever energy ties with Russia. Just 20 years ago, this seemed impossible, because during the Soviet era, Lithuania's economy was 100% dependent on the Soviet Union infrastructure, especially in matters of oil and gas. Even the electrical grids were completely connected to the Soviet system. We had to look for new solutions, connect to the European energy network - and we successfully did this. Thus, Russia's full-scale invasion of Ukraine only accelerated these processes. Today, Lithuania has become more reliable, economically independent, and stronger.

- What amount of budget expenditures has Lithuania planned for 2026 as part of agreements with NATO?

- This year, our military spending is more than 4.0 % of GDP, and next year we plan to reach a level of 5% of GDP - one of the highest indicators in NATO. If you look at the dynamics since 2013, Lithuania shows the highest growth rate of increase in defense spending. This confirms that Lithuania is a reliable ally and takes its own security very seriously. We expect that other allies will follow this example, showing the same solidarity and paying attention to all aspects of security covered by NATO.

- Thank you for the interview!