Lithuanian exporters turn towards Russia, away from Poland and Belarus

She also pointed out that exports to Poland and Belarus were diminishing due to a fall in the national currency exchange rates in those countries.

“We see that Poland’s share has declined somewhat. We obviously see the effects of a rather significant fall in zloty’s exchange rate, in particular at the end of last year...,” she told BNS adding that exchange rate fluctuations were also driving down the country’s exports to Belarus.

“It is related with the crisis in Belarus and with that sharp devaluation of Belarus’ rouble, delays in settlements, and it is hardly possible to speak about any economic recovery. Meanwhile, the situation on Russia’s market is different – there we compete on quality instead of price. At least our main food producers indicate that the trademark – products of Lithuanian origin – is marketed very successfully,” Klyvienė said.

Russia was Lithuania’s key export partner in the first quarter with exports worth 3.026 billion litas, up 23 percent year-on-year. The country’s exports to Poland shrank by 12 percent, to 975 million litas, and to Belarus by 39 percent, to 647 million litas.

The exports by Lithuania’s companies continued to grow and the key markets remained strong, Klyvienė said, noting in particular an increase in exports to Latvia, the UK, Germany, the Netherlands, and Estonia.

"If looking back to a period from the end of 2010, when everything headed upward, we would see that the growth of exports is slowing down gradually. It can partially be attributed to weaker external demand and worsened exports conditions. But in fact the figures remain positive, which is really a big advantage. Growth remains sustainable and strong,” Klyvienė told BNS.

“Favorable and well diversified export structure, the fact that we are not related with the economies facing the biggest difficulties let us expect very mild spillover effects from the recession in Europe,” Klyvienė said.

Lithuania’s exports rose by 11.9 percent in the first quarter of this year compared with the same period last year, to 17.659 billion litas (EUR 5.12 b), and its imports went up by 13.3 percent, to 20.438 billion litas.

The country’s foreign trade deficit widened by 23.7 percent, year-on-year, to 2.78 billion litas, Statistics Lithuania said earlier on Thursday citing provisional data based on customs declarations and Intrastat reports.

In March, compared with February, exports rose by 11.2 percent, to 6.337 billion litas, and imports increased by 8.1 percent, to 7.284 billion litas.