Saudi Press

Saudi Arabia and the world
Wednesday, Feb 12, 2025

Sky-high summit costs raise questions in Lithuania

Sky-high summit costs raise questions in Lithuania

Authorities in the Baltic country insist procurement for the upcoming summit was transparent, but costs have spiralled with Biden and Zelensky expected to attend.
The cost of hosting an upcoming NATO summit in Lithuania are causing concern.

Representatives from the 31-state military alliance will gather in the capital Vilnius in July, with US President Joe Biden and his Ukrainian counterpart Volodymyr Zelensky both expected to attend.

But the amount Lithuanian authorities are spending on the major meeting has prompted a rash of newspaper headlines as journalists probe the costs involved, forcing the government to hit back against allegations procurement lacks transparency.

Last week, public broadcaster LRT reported Lithuania's Foreign Ministry, which is organizing the talks, will spend €6.48 million renting more than 500 - mostly brand new - cars.

The luxury vehicles will be bought from a local company that's had its financing from the bank doubled to €20 million, just to afford to pay for the NATO summit cars and minibuses.

Meanwhile, Lithuanian journalist Andrius Tapinas questioned the price of services purchased for the meeting in April, detailing multi-million euro bills for video conferencing and lighting equipment.

All costs will be fronted by Lithuania, where an economic recession and skyrocketing food prices have helped push one in five into poverty.

Observers have questioned whether purchases by authorities were transparent, with some contracts being awarded through undisclosed negotiations, according to the Baltic News Service media outlet.

Officials say they were, claiming prices were influenced by the urgency of the process.

The conference has long been in the offing, with the Foreign Ministry estimating last July the summit would cost €30 million.

NATO summits inevitably require large sums of money for security, transportation and other hosting costs, especially when high-profile guests are in attendance.

Vilnius locals will face a number of disruptions, with roadblocks, cancelled flights and cuts to public transport.

One company Up Records, which will rent sound equipment for €553,000, had an annual income of €120,000 and made a loss of €50,000 in 2021," Tapinas wrote on Facebook.

Videoconferencing equipment will be rented for €1.6 million by Screen Service - double its annual income for the deal; while lighting will be supplied by Muzikos Ekspresas for €1.5 million. This is also twice its annual income, with the company making a loss of €250,000 last year, he added.

Telia, a telecoms company, was awarded a contract worth €2.70 million last year, through "undisclosed negotiations", LRT reported.

In April, Lithuania's Public Procurement Service said it was monitoring the situation and carrying out an assessment of what had been brought.

It noted "the risk of overpaying is higher" depending on the contract's timeframe, number of suppliers and buyer's negotiation skills, but maintained transparent conditions had been met.

Speaking in July, the Lithuanian Foreign Ministry said the country was capable of organizing and hosting the event, but unstable geopolitical and economic conditions could pose challenges.

Then the conference was expected for June, but it has since been pushed back.

Neither the Lithuanian government or NATO responded to requests for comment.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Apple Releases Critical Security Update Following Reports of Vulnerabilities
Israel Warns It May Terminate Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Move Palestinians, Promises to Welcome Children from Gaza.
OpenAI Reiterates Its Independence After Musk's $97 Billion Proposal
Saudi Arabia Assumes Presidency of GlobE Network to Combat Corruption
Riyadh Season 2024 Attracts 19 Million Visitors in Four Months
Saudi Schools Celebrate Founding Day with Nationwide Festivities
Saudi Arabia Participates in AI Action Summit in Paris
Saudi Arabia Issues Premium Residency to 685 Tech Experts
Saudi Arabia Sends Relief Convoy to Syria Amid Ongoing Humanitarian Crisis
Saudi Arabia Launches Electronic Service for Issuing Passports to Adopted Family Members
Saudi Ministry of Hajj and Umrah Introduces Flexible Payment Plan for Domestic Pilgrims
Saudi Council of Ministers Rejects Israeli Statements on Palestinian Displacement
Saudi Air Force to Participate in Cobra Warrior 25-1 Exercise in the UK
Countryside Winter Festival in Madinah Attracts Over 7,000 Visitors
KSrelief Expands Humanitarian Efforts Across Multiple Nations
Saudi Arabia and Argentina Strengthen Diplomatic Relations in Riyadh Meeting
Saudi Tailor Yousef Tammar Enrolls at Italy's Renowned Accademia Nazionale dei Sartori
Head of Muslim World League Visits Guinea-Bissau to Review Medical Initiatives
Saudi Arabia Advances Carbon Credit Initiatives Through Workshop
GCC Secretary-General Meets Sumitomo Corporation Chairman in Riyadh
Exhibition of the Holy Kaaba’s Kiswah at Islamic Arts Biennale 2025
Saudi Arabia's Mental Health Revolution: A Shift Towards Awareness and Accessibility
16th Klija Festival Highlights Local Beekeeping and Honey Production in Saudi Arabia
Saudi Arabia Dismantles Three Drug Trafficking Gangs, 19 Arrested
Boston Dynamics Founder Addresses Robotics and Regulation at Riyadh Summit
Saudi Royal Guard Celebrates Graduations and Sports Competitions
IBM Invests in AI Workforce in Saudi Arabia Amid Vision 2030 Initiatives
Saudi Arabia's Startup Ecosystem Sees Significant Funding Influx Ahead of LEAP 2025
Riyadh Expo 2030: A New Frontier for Saudi Arabia's Global Presence
Saudi Aramco Official Discusses Key Factors for Unlocking AI Potential at LEAP 2025
Saudi Arabia Unveils $14.9 Billion Investments at LEAP 2025 Tech Conference
Tencent Cloud to Launch Operations in Saudi Arabia by 2025 with $150 Million Investment
Saudi Arabia Emerges as Regional Technology Hub
Saudi Arabia's Sports Sector: A Catalyst for Economic Diversification
LEAP 2025: Saudi Arabia’s Tech Ambitions Take Center Stage
Saudi Ma’aden Achieves Successful $1.25 Billion Debut Sukuk Issuance
Pakistan Seeks to Strengthen Trade Ties with Saudi Arabia
Lenovo and Saudi PIF’s Alat Break Ground on Manufacturing Hub in Riyadh
Saudi Royal Decree Exempts Government Agencies from Licensing Fines
Saudi Arabia Elected to IAACA Executive Committee Amid Global Anti-Corruption Efforts
Royal Saudi Navy Joins AMAN-25 Maritime Exercise in Pakistan
Saudi Crown Prince Hosts IOC President for Enhanced Cooperation Talks
Saudi Arabia Experiences Extreme Cold Weather with Record Low Temperatures
Saudi Arabia Hosts International Olympic Committee President for Strategic Discussions
Saudi Arabia Secures $14.9 Billion in AI Investments at LEAP 2025 Conference
Global Condemnation of Netanyahu's Remarks on Palestinian Statehood and Saudi Arabia
Saudi Arabia and Argentina Strengthen Bilateral Ties Amid Regional Developments
Saudi Authorities Arrest 19 in Major Drug Trafficking Bust Involving Government Employees
Lebanon Inaugurates New Government with Hezbollah's Impact on Important Ministries
×