ABSTRACT
Russian economic presence in Lithuania is mostly visible in the energy sector, transportation (transit to Kaliningrad region, transit through Klaipėda port, dependence of the road carriers on the Russian market), and exports (and particularly re-exports) of goods. Another potentially vulnerable aspect of the bilateral economic relationship is the investment exposure of Lithuanian companies in Russia. At the same time, the Russian economic footprint in the Baltic country has waned due to a determined government policy for energy diversification and liberalization and the considerable drop in bilateral trade turnover after the start of the Ukrainian conflict in 2014. Despite being the target of both external economic attacks by Russia such as trade sanctions, energy supply cut-offs, and diversion of Russian goods transit, and domestic including the capture of the decision-making processes of key institutions, Lithuania has resistant the malign Russian influence by strengthening the anticorruption institutions and the supervision of mergers and acquisitions and capital inflows. Lithuania demonstrates an example of how a strong political resolve could insulate governments in the CEE from the negative impact of Russian malign influence.
