BCC Paper No. 50

Didzioji 5, LT- 01128

Transport, Real Estate & Tourism

issue No. 50

Michael West

Audrius Gudanavicius

Raimundas Alekna

Mark Splinter

Between Cycles: The EU’s Role in Supporting Lithuanian Transport Infrastructure

Residential Real Estate market

Flying without fear

Brits in Lithuania

page 5

page 4

page 6

page 10

Coming out from Russia’s Shadow: Lithuania’s Transport Sector Interview with Indrė Genytė – Pikčienė, Chief analyst, Financial markets, macroeconomics at DNB

It has been over half a year now since Russia first imposed its embargo upon certain goods from the EU. This has impacted the transport sector more than most. Have you a clearer idea of the damage being done to the sector and, more broadly, to the Lithuanian economy as a whole?

Lithuania has faced direct spillover effects from the Russia-Ukraine conflict and a general sense of geopolitical uncertainty, as well as the food embargo, which was just for starters. Russia fired off a new salvo of restrictions on Lithuanian transport in November. Russian officers at the Kaliningrad (Russia) border started extensive inspection procedures on Lithuanian and Latvian transport vehicles (incl. lorries), almost halting cross-border traffic. That was another hit for the transport sector. However, Lithuania’s export competitiveness was strongly undermined by Russia’s internal economic problems and the rouble’s freefall late last year. Russia’s currency depreciated by more

than 40% last year, making imports of goods and services from the EU relatively unattractive. Those factors weighed down on Lithuania’s GDP growth, which decelerated from 3.4% year-on-year (y/y) in Q2 2014 to 2.4% y/y in the final quarter of last year. Annual economic growth remained pretty solid at 2.9% y/y, as strong domestic demand outweighed the negative effects from external problems and the country’s exporters started to search for alternative markets as early as at the beginning of last year.

Lithuania’s exposure to Russia in terms of exports was significant, as Russia’s economy was the third largest market for Lithuania’s exports of local origin goods and the main target market for exports of services and re-exports, accounting for 25% and 43% of the total in 2013. However, recent trade data shows that Russia’s importance in terms of Lithuania’s exports of local goods has shrunk massively from 7.1% in 2013 to 4.3% in Q4 2014. And despite all these external shocks, total exports of Lithuanian-origin goods (excl.

Does Size Matter Every Time? decisions - believes promotes prosperity. As such the study seeks to provide a roadmap to reform for those governments interested in helping their economies.

Michael West, BCC member

Small can undeniably be beautiful at times, but economic logic tends to favour the big. Therefore for small countries like Lithuania access to foreign markets and, in return, the degree of accessibility it gives to foreign investments are crucial drivers in the country’s journey towards economic maturity. The extent to which a country is seen to be business friendly and economically free can really shape its economic fortunes when foreign investors look for a place in which to settle.

One place journalists and executives start when considering this question is the Index of Economic Freedom produced by the Heritage Foundation, in partnership with the Wall Street Journal.

Indexes measuring everything from happiness to pollution are currently in vogue, which in turn has prompted some to question their accuracy and relevance. The Economic Freedom index was one of the first to gain credence in the mid1990s. It is unabashedly political. Its stated aim has always been to support the operation of free markets, which it - and those making investment

oil products) gathered momentum and rose 6.9 percent year-on-year in Q4 2014.

continued on page 3 >

Russian Tourism Declines: The New Head of Lithuanian Tourism talks to the BCCL

So why bring this up now? Well it just so happens that Lithuania does very well in the latest rankings, coming in at 15th worldwide and sixth in Europe, wedged in between the likes of the UK, Germany and the Netherlands. This is a terrific advert for the country, and recognises the great strides made over the past 15 years.

resort and resort area development policy in the country and implementing the functions of international cooperation in the field of tourism.

More about the index The study seeks to assess the degree of economic freedom in a country by evaluating ten separate measures, which in turn are collected into four overarching categories: 1. Rule of Law (property rights, freedom from corruption); 2. Limited Government (fiscal freedom, government spending); 3. Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and 4. Open Markets (trade freedom, investment freedom, financial freedom).

A mark from one (low) to 100 (high) is given to each of the ten measures and balanced out evenly to give an average score.

The good news 15th place worldwide is a good performance by anyone’s standards and there is still room for improvement. continued on page 4 >

BCC SPONSOR MEMBERS

Jurgita Kazlauskienė, Director General of the State Department of Tourism, under the Ministry of Economy of Lithuania, was appointment in December 2014. She has kindly agreed to answer the BCCL's questions about where the future of Lithuanian tourism promotion is going, and coping with the drop of Russian tourist numbers after the Rouble crash.

In many countries Tourism has its own Ministry, but in Lithuania it is a department of the Ministry of Economy. Why is this?

Tourism is an important branch of Lithuania's economy. It provides almost one third of all the services created in Lithuania. The revenue from inbound tourism in 2014 is estimated to reach €1.45 million, therefore the Government’s political-strategic decision is that the Ministry of Economy of Lithuania is responsible for formulating tourism,

Traditionally the Russian tourism market has been given high priority for Lithuania. With the Rouble crash and other events, would you agree that the Russian market should be given less priority?

The tourism market is characterised by rapid changes and Lithuania's tourism marketing strategy is constantly revised and corrected in view of the dynamic geopolitical and economic situation. We received 8.8 % fewer Russian tourists in 2014, but advance forecasts indicate that the loss of Russian tourists will be offset by an increase in numbers from the other main sources of Lithuanian tourism: domestic tourism and tourism from the neighbouring Baltic countries. Particular focus is constantly given to the creation of new initiatives aimed at increasing the awareness and attractiveness of Lithuania as a tourist destination, and the search for ways to compensate for the possible loss of tourist flows from eastern markets. continued on page 6 >

BCC paper issue No 50

BCC paper issue No 50

2 New BCC initiative - Membership Referral Campaign

BCC ‘Member to Member’ Discount Scheme

Coming out from Russia’s Shadow: Lithuania’s Transport Sector < continued from page 1

twist in terms of redundancies. On the contrary, the number of group redundancies in 2014 was at a record low in recent years.

The transport sector also had a pretty good year, with Klaipeda’s seaport registering several records. The most recent road transport statistics are only for Q3 of last year, however both cargo volumes and the level of turnover transported by road had not slowed. This segment now faces some challenges due to the Russian factor, although for the time being, they are coping pretty well and using their comparative advantage of cheaper labour to establish their presence in western markets, as well as finding new destinations in other CIS countries.

The BCC is calling on existing members to help strengthen and grow its business network! Have you ever thought of mentioning your company’s BCC membership to your clients? Not yet? Then it’s never too late.

The aim of our ‘Membership Referral Campaign’ is to encourage you, our members, to invite your clients, partners or friends to join the Chamber in 2015. All you need do is refer someone you think might be interested in becoming a member and we will do the rest.

Members whose recommendations join the BCC will automatically participate in a prize draw at the BCC New members’ evening towards the end of this year.

Two magnificent prizes are up for grabs: a tablet computer and a trip to London for two!

BCC Membership Referral Campaign Sponsors:

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Transport

Bcc news

As a member of the British Chamber of Commerce in Lithuania and BCC Membership Card holder you can benefit from the discounts and special offers, currently available in sectors ranging from hotels, legal services and car rental to education and recruitment advice. The BCC discount scheme is designed to encourage cooperation between members and offers mutual benefits to all of those involved.

The funds from the previous wave of EU support were directed towards infrastructure projects: roads, bridges, crossovers, and Klaipėda’s seaport and airport. An effective road network and easy external reach is the core for vibrant economic growth. That is one of the fundamental principles on which a modern and efficient economy should be built. The main sector through which the effect of EU support can be seen through added value is construction. EU funding has been one of the key drivers of this economic activity since entry in 2004. Moreover, EU structural support has acted as a stabiliser during recent rough times. Projects funded by the EU have helped construction companies live through the economic downturn after the bursting of the real estate bubble.

Given that the weight of assistance to transport infrastructure, as a share of the whole, should fall in line with the EU’s revised guidelines for structural support, are you confident that alternative spending can be found that delivers the same boost to the Lithuanian economy.

The list of current discounts and special offers provided by BCC members for 2015 is available on our website www.bccl.lt

The next phase of EU support is also generous for Lithuania, however the stated targets are different. In my opinion, the boost to Lithuania’s economy could be even bigger if the country manages to assimilate the funds given for each of the targeted areas (for example, innovative projects, high-tech industries and higher valueWe note thatStatistics these constant political disturbances have helped Lithuanian exporters to gradually cut off Source: Lithuania added creation). In general, the recipe for Lithuania’s long-term their umbilical cord with this politically unstable market, which itself is sinking into inevitable recession. As a result, exporters have become more resilient and more diversified. growth perspective is simple: to ensure external competitiveness.

We note that these constant political disturbances have helped Lithuania is a small open economy, its domestic demand is shallow Source: Statistics Lithuania Lithuanian exporters to gradually cut off their umbilical cord with and the growth potential from within is limited. Therefore exports this politically unstable market, which itself is sinking into inevitable will remain the main driver in the longer-run. To ensure its success, recession. As a result, exporters have become more resilient and Lithuania needs several things: a business friendly environment and We note that these constant political disturbances have helped Lithuanian exporters to gradually cut off more diversified. an attractive climate for foreign direct investments (low levels of their umbilical cord with this politically unstable market, which itself is sinking into inevitable red tape, a simple and attractive tax system, flexible labour code). A recession. As a result, exporters have become more resilient and more diversified. structural shift towards higher value added creation is also needed as, at the moment, Lithuania’s manufacturing is dominated by lowor medium-low value added businesses.

If you are a member of the BCC Lithuania and would like to come up with an exclusive offer to other members of the chamber, please do not hesitate and join the scheme NOW!

Source: Statistics Lithuania

For more information, please contact Jurga Prakapaitė, BCC Membership services manager.

E-mail: jurga@bccl.lt

BCC Member Michael West joins the BCC

BCC Lithuania starts co-operation with The Duke of paper editorial team Edinburgh’s International Award programme in Lithuania

Michael West The chamber is proud to introduce Michael West, who will be helping to edit the BCC paper in 2015. The English language newspaper is

one of the services the chamber has offered to its membership for a number of years. The publication covers different business sectors and is engaging members via editorial and advertising. Business travellers can pick it up at Vilnius and Kaunas airports and become acquainted with some local market issues from the eyes of the British and International business community. Michael is keen to bring some small changes to the publication for the benefit of BCC members and the wider readership: “The paper has a longstanding tradition of offering insightful commentary on a sector-by-sector basis. We will continue this approach, but also revisit some sectors on a more regular basis.”

Source: Lithuanian Labour Exchange

Source: Statistics Lithuania

How has Lithuania’s economy adapted to the embargo? Can we see shifts in trading patterns and, given Russia’s predilection Source: Statistics Lithuania for regularly throwing up trade barriers, has this been a long see shifts in trading patterns term, permanent trend?

How even has Lithuania’s economy adapted to the embargo? Can we Source: Lithuanian Labour Exchange

The Duke of Edinburgh’s International Award is the world’s leading youth achievement award.

Since it was founded by HRH The Duke of Edinburgh in 1956, over eight million people have participated in the Award in over 140 countries and territories.

2. Physical wellbeing - achieving higher fitness through physical activity.

The Award has been operating in Lithuania since 1990’s with a small number of schools participating. The current strategy is to scale up its activity and reach in order to ensure that more young people have access to the Award programme across the whole of Lithuania. Further, the team is working hard to ensure that schools, universities and employers understand the value of the Award, and what it says about someone who is an Award holder.

4. Expedition - being part of a team, planning and completing a 2-4 day trip on foot, bike or canoe.

The Award has three levels - Bronze, Silver & Gold - open to young people between the ages of 14-24. Each level follows a proven framework which aims to equip participants with the knowledge, skills and attitude to help them reach their full potential. At the core of all Award levels is the aim that participants will learn new skills, help others, have fun, make new friends and gain a great sense of achievement.

The Bronze & Silver level have four sections for students to complete over 6-12 months, with the Gold level adding a fifth and lasting up to 18 months. The sections are: 1. Volunteering - making a difference to other people's lives.

3. Skills development - developing practical and social skills, and personal interests.

5. Residential (Gold level only) - undertaking a 5 day activity or specific course in a setting away from home.

Ben Harvey, holder of the Gold Award and a member of the BCCL Board, hopes that with mutual efforts this partnership will help raise awareness about the Award programme among the business community in Lithuania: ‘In the UK the Award is seen as a very strong addition to any CV. It indicates that the holder has shown a long term commitment to developing a valuable set of skills – for themselves and potential employers - which typically can’t be learnt in the classroom.’

‘We are grateful and excited to be supported by the Chamber as one of its Social Responsibility partners for the year ahead’, says Inga Cesnaite, head of The Duke of Edinburgh’s International Award programme in Lithuania.

For more information you are welcome to visit: www.dofe.lt, or contact Inga Cesnaite directly at: inga.c@lvjc.lt

The BCC paper is the official publication of the British Chamber of Commerce in Lithuania, covering a wide variety of subjects related to promoting and encouraging bilateral business relations between the UK and Lithuania. The BCC paper also provides an outlet for the chamber and its members to publish their latest news and offer their professional views on current political, economic, European and cultural topics. The paper is widely circulated: available from Lithuania’s two main airports, business centres, hotels and the UK and Lithuanian embassies, in addition to being sent to all BCC members and business contacts, meaning it offers premium advertising space to companies wishing to engage with the Lithuanian business community. The print run of BCC paper is 4000 copies.

Next publication date: June 2015 BCC paper team: Editor in Chief – Chris Butler Editorial support: Michael West, Alistair Day-Stirrat, Sandra Kundrotė Members section - Jurga Prakapaitė, advertising – Sandra Kundrotė, e-mail: Sandra@bccl.lt , tel. +370 5 2690062 Proofreading – Shaun Harvey Layout - Tautmilė Stanevičiūtė Printing – Lietuvos ryto spaustuve, UAB

Lithuanian Labour Exchange and, given Russia’s predilection for regularly throwing up tradeSource: barriers, has this been a longLithuanian exporters once more demonstrated a high degree of I also wondered if you were in a position to provide a comment term, even permanent trend?

flexibility and a talent for adjusting to external shocks. Dairy and on the EU’s structural funding in Lithuania? I was trying to get meat exporters started diversifying their export markets even before a picture of the relative importance of EU funding for Lithuania Lithuanian exporters once more demonstrated a high degree of flexibility and a talent for adjusting to Russia’s export ban, redirecting their sales to other markets in the in terms of the transport sector, both in the previous budgetary external shocks. Dairy and meat exporters started diversifying their export markets even before far east, South America and Arabia. External trade statistics show cycle and the new one. Lithuania has received pretty substantial Russia’s export ban, redirecting their sales to other markets in the far east, South America and Arabia. a stepping up in activity in the US, Japan, Indonesia, Singapore, support from the EU since joining in 2004. Much of this has External trade show Africa a stepping in activity in the US, Japan, Indonesia, Singapore, Vietnam, Vietnam, Hong statistics Kong, South and up other CIS economies. beenlabour focused on transport infrastructure.

Could you give us an Hong Kong, South Africaexchange and otherstatistics CIS economies. exchange statistics show Moreover, recent labour show noMoreover, worrying recent idea of the scale and importance of this help?

no worrying twist in terms of redundancies. On the contrary, the number of group redundancies in 2014 was at a record low in recent years. The transport sector also had a pretty good year, with Klaipeda’s seaport registering several records. The most recent road transport statistics are only for Q3 of last year, however both cargo volumes and the level of turnover transported by road had not slowed. This segment now faces some challenges due to the Russian factor, although for the time being, they are coping pretty well and using their comparative advantage of cheaper labour to establish their presence in western markets, as well as finding new destinations in other CIS countries.

Advert sizes and prices Prices

Size

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BCC Non member rate

Back page 1000 cm²

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Full page right 1000 cm²

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½ page 129 cm²

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1/3 page 326 cm²

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Small 129 cm²

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For further information or to book your ad space, please contact the chamber: Tel. +370 (5) 269 00 62/84, e-mail: Sandra@bccl.lt

BCC SPONSOR MEMBERS

Source: Eurostat

Source: Eurostat

Prepared by Michael West, BCC member

BCC paper issue No 50

BCC paper issue No 50

4 < continued from page 1

Residential real estate market in Lithuania after Euro adoption

Does Size Matter Every Time?

This is the fifth straight year that Lithuania has seen an increase in its score, with improvements registered in seven of the ten measures and no significant declines. In 2014, the report cites that prudent fiscal and monetary policies and continued improvements in perceived corruption were big ticks in the country’s favour.

openness of its markets. The raft of reforms necessary for EU membership before 2004 can take much of the credit for this, but the report also praised Lithuania’s policies towards investment, citing a particularly welcome environment for the free movement of capital within, into and out of the country. The efficiency of the regulatory system also helped engender a sense of being ‘open for business’. The report’s writers clearly liked the fact that just three steps are currently involved in starting a business in Lithuania and the fact that no minimum capital is required.

The relatively simple tax structure (by European standards) is also seen as beneficial.

Lithuania’s good scores for fiscal freedom highlight the country’s relatively low levels of public spending and debt, with public expenditure accounting for 35.9% of economic output and debt totalling 39% of GDP.

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Real Estate

Transport

The bad news Perceptions of corruption remain relatively high compared to Europe as a whole, though not when compared to other countries in the immediate neighbourhood. As an example of the prevailing problems, the report cites weaknesses in public procurement, where certain tenders seem to be tailored for particular bidders and official forms of corruption.

Other weaknesses identified include labour freedom, government spending and property rights. All of these are politically contentious and Lithuania’s record is not at all poor when considered through a wider European lens.

Indeed Europe as a whole scores particularly badly for government spending (i.e. too much of which is widely considered to crowd out privatesector spending). This is obviously a lingering

Lithuania ranks particularly well in terms of

Nevertheless, the total number of residential property transactions in Lithuania grew by 11% in 2014. Vilnius was the biggest market and accounted for almost 30% of all transactions.

effect of the financial crisis, during which various governments had to expand their activity to keep their respective economies afloat.

Conclusion Lithuania’s position in the rankings is already pretty high and naturally this makes it harder simply to stand still, let alone progress further.

However, there is still a great deal of lowhanging fruit for the country to pick in its quest to reform itself further. With political will, corruption, the labour market and property rights can all be tackled relatively easily and set on a better trajectory and, of course, the lingering consequences of the financial crisis will recede naturally. All-in-all, in this way, Lithuania’s size is a part of its strength. Being small makes you more nimble and flexible. The impact of reforms is more sudden and pronounced than it would be in a larger, more complex economy. In this way, small can indeed be beautiful.

Audrius Gudanavičius, Director of DNB Būstas For the past few years, the residential real estate market in Lithuania has been slowly recovering from the 2009 crisis. On January 1st 2015, Lithuania adopted the euro as its national currency, becoming the 19th member of the eurozone. Anticipation of the Euro's introduction injected a lot of unjustified expectations into households in 2014. At the beginning of the year, the number of real estate transactions had dramatically increased, bringing a lot of optimism not only to consumers but also to real estate developers. In the first 4 months of 2014, transaction volume had increased by 25%, however this activity slowed down towards the middle of the year and by the end of the year the volume of transactions was lower than in 2013.

The volume of construction works completed.

Annual percent variation

Activity in the construction of new residential real estate was observed in all property classes (economy, mid range and luxury class), however in the second half of the year, activity in the economy class segment of the market had decreased and more demand for luxury class properties was noticed. The rapid increase in the volume of real estate transactions in the first quarter of 2014, made the price vectors go upwards.

However, the high activity did not result in an increased number of mortgage loans. The majority of transactions (about 60%) were mortgage free.

Mortgage loans issued by DNB, on average had a 75% LTV (loan to value) ratio. This suggests that the real estate market is in good health and has a solid foundation.

Developers had noticed positive market trends as early as 2013. The volume of new residential construction works completed by the end of 2014 had reached record amounts. The supply of new properties was concentrated mainly in Vilnius, and in 2014 over 4000 new apartments were added to this market. Even with the high number of transactions taking place in 2014, we can already observe the signs of oversupply in

the new construction segment of the market, especially in the economy class.

trend is likely to continue in the near future.

When analysing the real estate market before and after the introduction of the euro, it’s worth noting that this was only a technical step and doesn’t have a direct impact on the market. House prices are simply a result of supply and demand.

However, consumer expectations do make an impact on their behavior. The very rapid market recovery at the beginning of 2014 wasn’t based on fundamental factors, but rather on unrealistic expectations of what would happen after the euro was introduced. Towards the end of 2014, expectations adjusted to reality and the market returned to its normal pace. The first two months of 2015 showed a decrease in transaction volumes compared with the same period in 2014. Looking forward, we could project that the first half of 2015 will be slower, and then the market will slowly recover, finishing the year with transaction levels similar to 2013. Taking the current level of supply into consideration, house prices are unlikely to increase.

The rental market was also very active in 2014.

As the increased demand for rental properties outstripped supply, rental prices increased by 5-6%. While the rental market in the country is slowly growing, Lithuania remains a land of property owners, with as many as 93% of households living in a property they own. This

INTEREST IN SECONDARY ASSETS AND RECOVERING MARKETS CONTINUES TO RISE

Between Cycles: The EU’s Role in Supporting Lithuanian Transport Infrastructure Overall

Michael West, BCC Member

The European Union’s assistance to Lithuania is substantial by any measure. But assessing its actual impact can be problematic because this support is diffuse and spread over a number of separate projects. While large, big ticket projects are familiar faces of the kind of projects funded by the EU, so are hundreds of smaller ones. This kind of support, usually for smaller entities, plays a facilitation role, more akin to ‘seed money’, i.e. co-funding for projects in their start-up phase that would otherwise struggle to raise sufficient funding.

Each country is given an allocation and a set of guidelines in which to operate. Beyond that, it is down to each government to apportion its share of funding as it sees fit (with oversight from the European Commission). Overall the EU’s budget is set for seven years, in what is called the Multiannual Financial Framework. We are now in the second year of the current cycle lasting from 2014 to 2020, which was absolutely settled only in the final days of 2013.

Of course it is no secret that Lithuania’s share of the previous round of EU funding (from 20072013) was heavily tilted towards transport infrastructure. In total, LTL 5.3bn of EU structural funding was directed towards 340 projects dealing with transport infrastructure in that last spending cycle.

Road

Rail

Sea

Air

Logistics

Structural assistance from the European Union comes in two flavours: “solidarity” and “cohesion”. Solidarity stands for the objective to assist regions at lower social and economic development level comparing to EU average. Cohesion means the reduction of the economic and social shortfall among EU member states is beneficial for everyone. 1/3 of the EU budget is dedicated to this policy.

Bypasses and ring roads around Vilnius and other towns International transport corridors (i.e. major motorways) Reconstruction of local and regional roads Tarmacking of gravel roads Modernisation and development of municipal transport infrastructure Road safety Environmentally friendly public transport

Klaipėda-Pagėgiai railway line and railway overpass across Varnėnų street in Klaipėda, as well as continuous development of Klaipėda railway node, building secondary railways and continuing further implementation of “Rail Baltica” project with additional support from TEN-T Fund

Klaipeda Port: construction of dock for small and recreational vessels, deepening of waters, deepening and widening of the port entrance

Modernisation of Vilnius, Kaunas and Palanga airports. In 2013 all three airports welcomed 3.48m passengers, handling 43,078 flights

Build accessible railways and roads, truck parking and other objects of infrastructure

LTL 5.3bn

LTL 685.4m LTL 396.3m LTL 68.9m LTL 537.5m LTL 428.1m LTL 87.6m LTL 75.5m

LTL 1.3bn

LTL 473.8m

LTL 166.1m

LTL 219.5m

Dr. Herkus Gabartas, attorney at law, Bukauskas & Partners / PwC Legal, Competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets, according to Emerging Trends in Real Estate® Europe 2015, a forecast published jointly by the Urban Land Institute (ULI) and PwC. The report highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid (up 16 positions), Athens (up 23 positions), Birmingham (up 14 positions), Amsterdam (up 17 positions) and Lisbon (up 17 positions).

The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead of the challenges of regulation or the cost of finance. A large majority of investors (82%) believe the availability of suitable assets will have a moderate or significant impact on their business this year.

According to attorney at law dr. Herkus Gabartas, who is leading a real estate practice at the law

Of course, a great deal of this will become clearer in practice. One of the difficulties in spending EU funds is to make sure you have sufficient projects capable of meeting the strict spending requirements. In practice, road building and infrastructure spending are fairly simple ways of allocating funds with contractors and government ministries well versed in obtaining funding through EU channels. Of course, the desire may be to shift some of this weight towards the private sector, but in practice this will only happen if those companies are able and willing to do the paperwork.

According to the report, real estate investors – armed with capital from sovereign wealth funds and pension funds from Asia and North America – are moving into less competitive environments, looking at secondary cities, secondary assets and development opportunities. Berlin, for example, has replaced Munich as Europe’s top market for investment, as it is viewed as less costly than other major German cities.

Lisette Van Doorn, chief executive of the ULI Europe, said: “As confidence has returned to global real estate markets over recent years, there has been a progressive movement up the risk curve.

Investors have found prime assets expensive and hard to source, and have in turn looked to find new opportunities in recovering secondary cities, secondary assets and development opportunities, as well as new or alternative real estate classes.

The trend has been prevalent in the U.S. for a few years and was first highlighted in last year’s Emerging Trends Europe report when investors were looking at Ireland and Spain. However, this year’s report sees this sentiment gather pace with Athens, Amsterdam, Birmingham and Lisbon all being cited as potential hot spots of interest.”

An interesting consequence of the balancing act is that the appetite for residential investment is growing, stimulated by a housing shortage in

Disconnecting from district heating BCC Member Question to Legal Expert

Source: Ministry of Transport and Communications

If that was the way it was, what does the new cycle portend? Well, EU-wide, the budget totals EUR 960bn in commitments, with additional funding if needed for unforeseen events. Of this EUR 125bn is earmarked for ‘sustainable growth, jobs and competitiveness’, the stated focus of this spending cycle as Europe seeks to recover its poise from the economic battering it has received of late. This includes money to be used to help small-to-medium enterprises, education and training and so on. But it also includes a large apportion for transport, which remains one of the largest components. Money for transport will also be contained within the economic territorial and social cohesion parts of the budget.

firm Bukauskas & Partners / PwC Legal, "European trends in real estate market are also visible in Lithuania. It applies in particular to Vilnius, which faces a shortage of certain A group business centres, and thus has a significant adverse impact on investment attractiveness. However, it is expected that 2015 will bring some changes in the office market due to the expected completion of such real estate development projects as “PREMIUM”, “K29”, “QUADRUM” and “UNIQ”.

Comment by Jelena Piatina, associate at Tark Grunte Sutkiene

The number of multi-apartment building renovation projects being implemented is consistently growing. This trend continues as it allows significant savings on heating energy consumption.

Nevertheless, the issue of disconnecting a single apartment from district heating is still relevant.

Lithuanian courts acknowledge that in order to install a separate heating system the consumer must follow specific requirements provided for in the legal acts. The heat supply contract is deemed terminated and the consumer ceases to have any obligations under it only where the disconnection from the district heating meets both legal and technical requirements. Therefore, even if the consumer has factually separated the heating system, but failed to meet the requirements stipulated by law, e.g. failed to obtain a permit, he will still have to pay fees to the heat supplier.

The legal framework of disconnecting from the district heating is not clear. Currently there are significant discrepancies between construction

BCC SPONSOR MEMBERS

London and some other markets. The interest in the private rented sector is particularly marked in the UK and Germany. Other sectors that look attractive to investors are logistics, fuelled by consumers’ increasing digital shopping habits, and healthcare.

Real estate investors will face a tricky balancing act in 2015. The market may awash with capital surging into Europe from around the world. On the face of it, this is a nice problem to have, but prices are expected to continue rising due to a shortage of assets. And despite an uncertain economic climate across Europe, investors will have to look beyond the major markets to secondary cities and assets they may not have considered before. This presents both an opportunity and a challenge.

According to attorney at law dr. H. Gabartas, “when talking about real estate market in Lithuania in 2015 we should also not forget that alongside the global and European market trends 2015 is the last year when new B energy class buildings may be designed in Lithuania. Starting from 2016 the new requirements will come into force requiring all new buildings to have the energy efficiency of not lower than A class. Developers are already preparing for these changes, which inevitably cause additional investments, and it may have an upward impact to real estate pricing already this year.”

Top Investment Markets for 2015 The top five European real estate investment markets in 2015 are predicted to be: 1. Berlin – The city has moved up the rankings from last year, knocking Munich off the top spot for investment prospects this year.

Historically dominated by domestic buyers, regulations and specific heat supply regulations, resulting in complexity of the process of disconnection. Moreover, in administrative case dated 31 October 2014 The Supreme Administrative Court of Lithuania has ruled that some specific provisions of Rules on Heat Supply and Consumption are in contradiction with the acts of superior legal power. In spite of this, no significant actions are taken to simplify the respective procedures or solve the existing shortcomings.

Even after a proper disconnection of an apartment from heating network the owners still face problems regarding the fees for heating premises of common use (staircases, basements etc.).

Lithuanian courts have held that all owners of a multi-apartment building are responsible for the maintenance of premises of common use as those premises are their joint property. The respective obligations cannot be allocated or relieved by multi-apartment building owners. Under the current practice an owner of the apartment is obliged to pay fees for heating of the premises of common

Berlin’s investment climate has now changed as international investors pour capital into the city.

The city is a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector.

2. Dublin – Ranked again in second place, the city has had another strong year in which investors have jostled for opportunities. It has a good story to tell: strong rental growth based on low supply, employment growth and an improving economy.

Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak.

3. Madrid – the Spanish city has shot up the rankings for investment prospects this year and many overseas investors are targeting the city.

But whether Spain offers solid, long-term business prospects is hotly debated among opportunistic investors.

4. Hamburg – The city has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals.

International investors are flooding into Hamburg, accounting for half of the 2.4bn euros of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving.

5. Athens – Athens is the biggest mover on the list this year, zooming 23 places to number 5. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention. Although Europe’s hardest-hit economy remains fragile, a few trailblazing investors are moving in to take advantage of pre-rebound opportunities.

Prepared by PwC

use based on the floor area of his apartment irrespective whether or not he uses the premises in question.

Additional challenges arise when the owners of a multi-apartment building decide to cease heating premises of common use. Formerly, the owners of apartments with a separate heating system were obliged to pay fees regardless of the fact that premises of common use were not connected to the heating network. To resolve this issue in November 2014 Lithuanian Parliament has adopted several amendments to the Law on Heat Sector of the Republic of Lithuania, stipulating that the owner of an apartment shall not be obliged to pay for heating of commonly used premises in case the heating was cut-off due to mutual agreement of the co-owners. The rules on allocation of heat in multi-apartment buildings were revised accordingly. This has brought some clarity to legal framework, but there is still much space for improvement.

BCC paper issue No 50

BCC paper issue No 50

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Tourism

Russian Tourism Declines: The New Head of Lithuanian Tourism talks to the BCCL < continued from page 1

Lithuania has a relatively small tourism promotion budget. Therefore, would you agree that Lithuania ought to focus solely on ‘high-value’ tourism?

Spa tourism, an area where Lithuania has much to offer, is one of the key promotional areas. What are the other pillars of Lithuanian tourism?

Nowadays, travellers look for experiences beyond conventional tourism. Therefore, transnational thematic tourism products such as amber, have great potential for growth. Using amber as a joint theme and business concept helping Lithuania to promote itself, and to better position amber destinations as "unique“ in worldwide markets is an exciting possibility. Supported by the United Nations World Tourism Organisation, the Lithuanian State department of tourism initiated the World Amber Road project, combining a variety of marketing activities and experiences in creating tourism products which use amber as a theme.

Last year proved to be really successful for Lithuanian tourism: the growth of foreign tourist flows was 8 per cent.

At the same time, Lithuanians themselves showed more interest in travelling around their home country, with a 9% increase in domestic tourism. In addition, Lithuania, as a must-see country, was evaluated by authoritative business media channels and the prestigious travel guide Lonely Planet, which ranked Lithuania third in their list of 'Best in Travel 2015' destinations. We believe that this award will be helpful in attracting more tourists to Lithuania.

Lithuania's priority tourism products are defined in the Lithuanian Tourism Development program for 2014-2020.

They are: cultural tourism, business tourism, health tourism and green (eco) tourism. The priority of the Department of Tourism will remain focused on both inbound and domestic tourism.

Approximately one-fifth of the Lithuanian population is currently living or working abroad, many in the UK, Ireland and Scandinavia. Could more be done to communicate Lithuania’s message through those Lithuanians abroad?

Tourism

Welcome to the Emirates Palace The iconic Emirates Palace is the pinnacle luxury, reflecting the true warmth and generosity of Arabian hospitality. Through its luxurious amenities and personalised service, the Emirates Palace promises guests from all over the world a distinctive holiday experience. Located at the heart of the UAE’s capital city of Abu Dhabi, the Emirates Palace is the preferred destination for business and leisure travellers, as well as a glamorous venue for international events, conferences and exhibitions within the GCC. Set along 1.3 km of pristine white beach with refreshing pools and acres of lush gardens, the Emirates Palace has 394 rooms and suites that have

been beautifully designed and furnished to offer guests superior comfort and convenience. With many of Abu Dhabi’s leisure attractions situated within a short distance from the Palace, including superb shopping destinations and impressive cultural and heritage sites; The Emirates Palace provides guests the perfect place from which to explore the beauty and charm of this traditional, yet amazingly cosmopolitan city.

At the moment, leisure travellers are not fully knowledgeable and aware of Lithuania and what it has to offer as a destination.

Our vision is to educate the travel industry and leisure traveller about Lithuania and what we have to offer as a destination.

I will seek the benevolent and constructive cooperation of municipalities, associated tourism business structures, the diplomatic sector and major players in the tourism market in working towards the common goal of increasing the awareness and attractiveness of Lithuania for all tourists.

Prepared by Alistair Day-Stirrat, BCC Board member

Land acquisition by foreigners in Lithuania: regulatory overview BCC Member Question to Legal Expert Upon the expiration of the transitional period, on 1 May 2014 a new Law on the Acquisition of Agricultural Land came into force. This law entitles foreign individuals and legal entities to acquire agricultural land in Lithuania, subject to certain requirements provided for by the Law. The position of foreign subjects who do not meet the criteria of European and Transatlantic integration remained the same, however, they may possess and use land, inland waters and forests on other grounds (for example, rent).

In accordance with the Law, foreigners fulfilling the integration criteria may acquire agricultural land on the same terms and conditions as natural and legal persons of the Republic of Lithuania.

Rasa Narbutaitė associate at Tark Grunte Sutkiene

The State of Lithuania is the exclusive owner of subsoil, internal waters, forests, parks, roads, and historical, archaeological and cultural objects of national significance. These objects are not allowed to be acquired into private ownership; however, individuals and companies may acquire title (with certain restrictions) to other lands, including agricultural.

The right of foreign individuals and legal entities to acquire land in Lithuania is governed by a special constitutional law. In accordance with this law, only those individuals and legal entities that meet the criteria of European and Transatlantic integration, i.e. EU Member States or states parties to the EU Association Agreement and OECD, NATO and EEA member states, are allowed to purchase land, internal waters and forests in Lithuania.

However, even those foreigners who met the criteria were not entitled to acquire agricultural land until 1 May 2014, with certain exceptions provided for by the constitutional law. After joining the European Union in 2004, Lithuania was granted a special status allowing evading the regulation of free movement of capital for seven years, with the possibility of extending it by another three years.

Lithuania together with the Czech Republic, Estonia, Hungary and Latvia was allowed to maintain the existing restrictions in national legislation applicable to the acquisition of agricultural land by nationals and legal persons from other EU/EEA countries. The transitional period was extended until 30 April 2014.

Different criteria are set for individuals and legal entities to acquire agricultural land. An individual may acquire agricultural land only when proven that he or she has occupational skills and competence, i.e. the person has been carrying out farming activities for at least three years, declared agricultural crops, has registered a farm or has a diploma or certificate of agricultural education.

A legal entity may acquire agricultural land if it has been engaged in agricultural activities for a period of at least three years during the last ten years and declared agricultural crops. Such legal entity must also earn at least 50 per cent of its income from agricultural activities and prove its economic viability. The total area of agricultural land to be acquired from the State cannot exceed 300 ha, whereas the total area of the agricultural land to be acquired from the State and other persons cannot exceed 500 ha.

In practice, there were cases when foreigners failing to meet the criteria of European and Transatlantic integration acquired land (including agricultural) indirectly, by setting up companies in Lithuania for the acquisition of desired land.

However, the Supreme Court of Lithuania ruled that transactions on the transfer of land to the companies owned by the persons not eligible to acquire land in Lithuania must be regarded as null and void, provided that the only purpose of setting the company was to avoid the restriction for acquisition of land in Lithuania.

Real estate transactions require notarisation. Failure to notarise such agreement makes it invalid. Besides, the agreement on sale and purchase of real estate may be invoked against third parties only upon proper registration of such agreement with the Real Estate Register. The Register is public and keeps records of all real estate and rights thereto, inventory files, etc.

Flying without fear: how to avoid a panic attack

‘Thank you for choosing our company. The safest part of your journey is over. Now the roads await you!’ is the snappy farewell given by the flight attendants of one American company to disembarking passengers. In fact, flying causes people to panic much more than is often imagined. ‘A flight can be pleasant for everyone. Workaholics can take a break and people with a fear of flying who overcome their phobia can enjoy flying just like everyone else,’ states Raimundas Alekna, head of the Vilnius Centre for Psychotherapy and Psychoanalysis and Director of the Azuolynas Clinic.

When flying, if you only think only about how fragile the aircraft is, if the droning engines start to make your head spin, if you feel short of breath, and if you want to cancel the flight more than anything in the world, you are probably suffering from aerophobia. The good news is that this fear can be overcome. ‘First, think about the fact that the aircraft’s crew are people who have their own lives and families and truly want to live. In addition, a great deal of attention is devoted to mental stability during their selection,’ says Psychotherapist R. Alekna. ‘If you cannot keep away from the internet before your trip, look for information about safety instead of looking for disasters. If you select the safest airline, you will truly feel better.’

An excellent way of protecting yourself from the fear of flying is a camera. Put it in your carry-on bag and during the flight, photograph the cloud ‘castles’, patchwork fields, and rivers through the window. Those who have tried this method say that they look at the flight through the camera’s lens and the fear disappears. Taking pictures occupies not only your brain, which no longer has any time to be afraid, but also your hands; this process demands great concentration so it is natural that you focus less on the phobia.

Do not cringe in your seat. That will only increase your fear. It is the same way with your health: if you start to pay attention to every pinprick and little mole, you will soon feel sick. So instead of suspiciously questioning every odd sound, walk about the cabin, converse with the people sitting next to you, talk to the staff, order something to eat, etc. In short, move about and do not allow yourself to ‘control’ the flight. Rest assured; the crew is doing it better.

Frequently a person fears not the flight, but their own mental state that occurs on the aircraft, i.e. a panic attack. According to Psychiatrist R. Alekna, a panic attack is like a mechanism that has its own operating principles. Knowing them, a person can control these discomforting feelings. People generally feel like they are about to have a heart attack: their heart is pounding, their head is starting to swim, their limbs become numb, and they

Raimundas Alekna, Psychiatrist – Psychotherapist, Head of Vilnius Centre for Psychotherapy and Psychoanalysis and Director of ‘Ąžuolynas‘ clinic are becoming short of breath. But hold on! Here is the real secret. Many say that all of these feelings are from a lack of oxygen. In fact, this bodily reaction is connected with a surplus of oxygen in the brain! In other words, you do not need to breathe even more, but to reduce the quantity of oxygen in the body. Look, the oxygen in the cabin is distributed equally; so if there were not enough, a shortness of breath would be noticeable in many people. Do you see anyone gasping for air? No, they are sitting calmly; in other words, they have enough air. It is important to know that the more a person talks, the more air gets into the body; so help yourself: act more calmly and talk less. ‘Now concentrate on breathing: breathe in and breathe out while counting to two during each, then hold your breath while counting to three in your mind.

Continue breathing like this until the unpleasant sensations pass. Trust me; they definitely will!’ advises Psychiatrist Raimundas Alekna, Director of Azuolynas Clinic.

Regardless of whether or not you are afraid of flying, we can help you feel better and relax during the flight. A little meditation can also be useful. Sit comfortably and focus on breathing calmly from your abdomen. Now remember the happiest moment of your life. In your mind, recreate the circumstances: the more details, smells, sounds, and impressions you succeed in recreating, the more you will create a feeling of happiness. Stay in your projection of happiness as long as you can. Recall how you were sitting or standing at that time and how you were feeling. According to psychotherapists, such meditation not only calms the brain, but also allows you to relax.

BCC SPONSOR MEMBERS

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Chronicle of BCC Events

Chronicle of BCC Events

16th Burns Night in Vilnius increases raised amount for the local charities On January 24th, the British Chamber of Commerce in Lithuania held its 16th Annual, Traditional Burns Night, Charity Event to celebrate the birthday of Scotland’s national poet, Robert Burns (1759 – 1796) and to raise funds for the local charities. The charity raffle this year raised 6.420 EUR, which increased form the last year and will be shared

by NGO “Verslas ar menas” and “Nano radijas“.

Breakfast Technical Briefings 2015 BCC Breakfast Technical Briefings in the beginning of 2015 kept an interest from chamber members and friends alike. In January, Vykintas Valiulis and Arūnas Šidlauskas, representatives of BCC new member Grant Thornton Rimess introduced the key changes of the tax and legal environment in Lithuania in 2015. The topic attracted an interest from members and involved the audience interaction after presentation. The event was held at Shakespeare hotel, where business networking was enriched by morning coffee and excellent English breakfast.

In keeping with tradition, the 16th annual Burns Night was held in Vilnius City Hall. The event was attended by 253 guests including the top business managers, diplomats and guests from Scotland and England.

Chris Butler, the chairman of the British Chamber of Commerce and MC of this event expressed his appreciation to all, who are supporting the Chambers’ annual fund-raising initiative: “The event has become the main vehicle through which the members and guests of the British Chamber raise funds for good charitable causes. Over the 16 years we have helped 19 different charities ranging from orphanage homes, cancer charities, addiction centres to help-lines and a number of educational projects. In total 52.760 EUR has been raised.”

As appropriate, Burns Night in Vilnius was celebrated in a true Scottish manner. The haggis was ceremonially piped in and “The Address to a Haggis” was recited by Iain Watson, a Burns Supper Enthusiast born in Burns Country, who also toasted “The Immortal Memory” later in the evening. This year Guests had an opportunity to be introduced to the Scottish sword dances by excellent professional highland dancer from Scotland Eileen McRobert. The musical entertainment and ceilidh dancing this year was led by traditional music band “FIDRA”, making their debut in Lithuania, which was a great success.

After the midnight the Scottish night was continued in Dirty Duck Pub.

Arūnas Šidlauskas, Head of Legal Department, Grant Thornton Rimess

Vykintas Valiulis, Head of Tax Department, Grant Thornton Rimess

Both events were moderated by Robert Juodka, Managing Partner and Attorney-at-Law at VARUL and BCC Board member.

The supported charities in 2015: NGO “Verslas ar menas” is a social enterprise, which develops publishing of innovative products for sighted and visually impaired people, creates and implements various social projects for visually impaired and socially damaged children and youth. Through the raised fund at Burns Night 100 books of “Da Vinci’s Stories printed in both braille & written text will be published & donated to schools, libraries and children from disadvantaged families so that blind/visually impaired children can read together with those with good eyesight. More information about this charity can be found by visiting their website www.vam.lt

Robert Juodka, Managing Partner and Attorney-atLaw at VARUL and BCC Board member

Liudas Karnickas, Senior Associate and Head of IP / IT practice group at Raidla Lejins & Norcous

The chamber expresses thanks to Pearson, leading educational publisher of English Language Teaching resources for kindly establishing excellent prizes during the season.

Nano radijas is a radio programme run by school age kids in two iauliai schools.

This project stimulates interest and knowledge about journalism and media. Participating in a project, the school age kids have an opportunity to develop their writing skills while preparing for their own shows, communicating skills through ‘on air’ shows, and technical skills through their work with professional equipment in the studio. Money raised will be used to purchase equipment to create a hub in Vilnius where content from all schools can be stored & shared making it easier for any school to find content. The hub will be managed by students from Vilniaus Kooperacijos Kolegija. (College in Vilnius).

BCC continuing series of BCC Professional Workshops in 2015 At the beginning of February, the chamber invited participants to the first half day workshop this year focusing on English for copywriting and promotional material with the title ‘Making the right impression’. The workshop was lead by Michael Pennock, professional English language teacher, copywriter and consultant at London International School of Languages in Vilnius and was aimed for business representatives, who regularly write extended texts in English, including copywriters

and translators. The interactive session provided lots of opportunities to try out what was learned during the event and go deeper into areas of interest. The lecturer used the real examples of press release, articles and web text to illustrate different points, and created opportunities for practicing by creating of the own versions of these forms by the participants. As usual, the workshop was followed by networking lunch this time at Comfort Hotel.

Photos Dovile Rozmanaite - Bruziene

The chamber expresses its enormous gratitude to 16th Burns Night sponsors and Charity raffle sponsors

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Alternative education: the best UK practice presented at BCC Speaker’s event In the end of February, members of the British Chamber of Commerce were invited to attend a ‘Speaker’s event’ with Sean Bellamy, Founder and teacher at democratic Sands School in the UK. The event was held in Grotthuss hotel and was a part of BCC’s CSR programme, sharing the best UK practice in the field of an alternative education.

Mr Bellamy delivered an inspiring speech “Democratic education: the Key to Successful

Futures”, where he talked about the progressive school model offering real life experiences for the students and alternative face of education for society in general. It was later followed by interactive discussion and members’ networking. The event was organised in partnership with the first Demokratine mokykla in Lithuania to be opened in September 2015 and the British Council.

Event partners and sponsors:

Breakfast Technical Briefing in February, hosted Liudas Karnickas, Senior Associate and Head of IP / IT practice group at Raidla Lejins & Norcous, who made a presentation “Falling into (il)legal advertising practices”. The topic highlighted the most common advertising practices and provided practical tips on how to avoid infringements.

Photos by Jurga Prakapaitė

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BCC paper issue No 50

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BCC paper issue No 50

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Brits in Lithuania

Footprint: A new opportunity for Lithuanian students to make their mark

Carlson Wagonlit Travel (CWT) Sees Continued Growth in 2014

Risk Management in changing environment

In February 2015 Carlson Wagonlit Travel (CWT) announced strong financial results for 2014.

CWT recorded new business sales of US$1.6 billion in 2014. Overall sales volume increased by 1.6 percent to US$27.3 billion, reflecting the continuing variable global economic climate.

The number of transactions managed by CWT increased by 3.3 percent to 62.3 million. CWT's client satisfaction scores were particularly strong, with a 97 percent retention rate, combined with 87 percent travel manager satisfaction rate and an 88 percent satisfaction rating from travelers. Last year also saw 345,000 user registrations for CWT To Go™, CWT's award-winning app.

Mark Splinter

British journalist and political columnist Abdul Turay received headlines for running and winning a seat on Tallinn city council in October 2013. Now Mark Harold (also known by many as Mark Splinter) is attempting to make history in Lithuania.

Mark, am I correct in thinking you are the first Brit to run for council in Lithuania?

Yes. And the first foreigner to be elected according to EU citizenship status.

EU citizens in theory can run for council seats in the city they reside. But in practice it is perhaps not so straightforward. Could you elaborate on the process for us?

In theory it's quite easy. In Lithuania being an independent candidate is mathematically very disadvantageous, but you are allowed to be on a party list, if they accept you. So you find a party you agree with, and talk to them, and promote yourself to the party members, and when election comes around you hope they select you to be on their list.

As a foreigner, you will be a prestigious choice for any party which is not nationalist or xenophobic.

I managed to convince the party to put me at nr. 19, and then fought hard for voters to rate my number specifically and push me up the list. 2700 people rated me, and I ended up 11th, which was enough to win a seat because my party won 15 seats.

But in practice - it's very difficult to understand a foreign political system, learn the rules, make the right friends and get enough support to convert into actual votes. It's hard work but I would recommend it to anyone who likes a challenge and honestly cares about his principles. You also have to be ready for people to write horrific insulting lies about you every day.

You’ve even been to Vilnius court on a technicality, this was resolved in your favour?

First of all to prove to myself and to the world that Vilnius is a great, forward-looking, European city, where people are hungry for variety and openness. They elected a Brit, so that's a very encouraging sign that the old problems of xenophobia are vanishing. I first started to think about running for city council when the council was blocking the Baltic Pride parade, I think that was a turning point for many people. There was a lot of fear about the parade and it turned out to be no problem, and one of the most profitable days for the town centre. I will do everything I can to ensure that people's right to gather and march peacefully is not taken away or diminished by the council. Also I know from experience that there are many problems with the nightlife industry, bureaucracy and corruption, safety concerns, and I think the council needs someone with experience to help them understand the solutions.

2015 brings the launch of Sekmes Mokykla’s new and exciting programme for students (9-11 grades). A programme which aims to provide participants with a broad-ranging and rounded learning experience, and includes a week long trip to the mountains of Morocco.

3. Creating a footprint in the community – students will take part in a project, including a sitevisit, to provide support to a Moroccan based charity which provides the opportunity of education to children from remote mountain communities.

Working together with BCC Board Member Ben Harvey - who brings his experience of travelling in Morocco, together with his knowledge of designing experiential learning programmes Sekmes Mokykla are offering a unique programme which encompasses a wide range of learning activities. Called Footprint, the programme has four core elements:

4. Leaving a footprint in another country – the trip to Morocco will provide the opportunity to experience and learn from the Berber culture and way of life.

1. Developing my personal footprint - providing students with the opportunity to understand their strengths, develop self-awareness and personal skills.

2. Establishing my footprint in teams – by working in teams during the programme, students will understand the different roles they can play, and learn what makes great teams work.

Douglas Anderson, president & CEO of CWT commented: "We saw positive growth and developments for CWT in 2014, as we continued to focus on driving savings for our clients and enhancing our mobile technology for travelers on the go. Last year, we transformed CWT To Go from what was an itinerary management application to a travel

application with the introduction of hotel booking and profile management. We helped bring door-to-door booking capability into the North American market and we created our dedicated innovation team, who will concentrate on the innovative partnerships, technology and products that we expect to drive our company in the future."

Anderson concluded, "We believe one of the most significant figures in our annual results is our client retention rate, which remained strong at 97 percent. This figure highlights our ongoing drive to support our clients in running cost effective travel programs and supporting travelers at every point of their journey. We will deliver significant new developments around our products and services, including the upcoming new data reporting tool, CWT AnalytIQs, which will be a major milestone in the year ahead."

While the highlight of the programme will be the week spent in the Atlas Mountains, and the chance to trek up the highest mountain in North Africa (Mt. Toubkal, 4,167m), the programme also includes several learning activities in Lithuania.

Time will also be spent preparing students physically and mentally for the challenges that await in Morocco.

• Visit www.sekmesmokykla.lt for upcoming announcements about Footprint.

• For any organisation wishing to discuss partnership or sponsorship opportunities contact Ben at: ben@growingtalent.eu

Industry Overview by Euromonitor International Revenue in the freight transport by road category was driven by higher spending of British wholesalers, which increased spending on services by 8% in 2013. The local wholesale industry saw a successful year in terms of sales volume. Sales were markedly up in industrial materials, building materials and agricultural and industrial machinery, food and drink and other segments. This strongly increased transporting needs for the industry. On the other hand, the retail and cement, stone and ceramic products industries significantly reduced purchases in the analysed market, offsetting the positive impact of the wholesale industry. This resulted in stagnant

Trees and pavement cafes and beautiful architecture in the old town, just a few minutes by taxi from lakes and forests, and you can fly over the centre in a hot air balloon. I don't know many capital cities like that! If people are considering a short break, they really can get a bit of everything in Vilnius without all the logistical hassle or huge hotel expenses. And the city is very welcoming of foreigners, and very English-speaking, compared to other cities where I have tried to have a holiday.

Yes, the Electoral Commission gave me incomplete advice, which I followed, and then later they said my paperwork wasn't in order. Factually everything was OK in reality, but something went wrong in the bureaucratic vortex, and it wasn't my fault. The Commission weren't interested in looking at the facts, they considered only the papers. I complained to the Supreme Administrative Court and the judges told the Commission that in future they should look at the spirit of the law, not just the letter, and that technical problems shouldn't obstruct my candidacy. The decision was reversed by the judges, and I was reinstated on the list. This is a significant precedent, because the Commission now has to work harder, investigate deeper, to look at more than the wording of the regulations. They weren't very happy about this development! But it gives the Commission more power to fix mistakes humanely, before they have to go to the Supreme Court.

What in particular are you trying to achieve by running for city council?

Prepared by Alistair Day-Stirrat, Editor of BCC paper

costs. Today, however such additional services as loss prevention and risk management come into scope. These new trends are moving the focus from price/cost to the concept of strategic long-term risk management and these are the key factors when choosing a reliable insurance partner (insurance carrier and/or insurance broker). The process of strategic risk management is continuous one and the choice of long-term business partner is very important. According to the data of Aon Baltic, there were quite a few cases when clients decided to take another more straightforward and price oriented approach to risk management but after some time they returned to the long-term partnership and focused on integrated risk mitigation model implementation in their companies because of a very simple reason: loss prevention and risk mitigation gives better long-term results.

Aon Baltic has a logistics department and aside to insurance broking also provides specialized services to the logistics market players. Aon Baltic specialists can provide transportation companies with complete insurance program analysis, safety and loss prevention, claims management and client services. Aon Batlic have developed strong relationships over the years with the domestic and foreign insurance markets that specialize in the road transportation sector.

Freight Transport in UK

For this edition we are again talking tourism.

You are a big fan of Vilnius. What particularly stands out for you?

Specifically on tourism to Vilnius. If you get elected to the city council. How would you wish to influence tourism policy and improvements to Vilnius city promotion?

Today‘s geopolitical situation forces logistics companies to change business strategies. They start looking for new markets and new routes which often have a negative impact on accident rate. The reasons of such changes are rather simple: drivers are used to working on certain routes and when these are changed, the trend of increasing number of Motor Third Part Liability insurance claims is noticed. For instance, if earlier the drivers were usually going on the routes from Lithuania to CIS countries, now many of them change direction to Western Europe and this is quite a big challenge for truck drives.

According to the claims statistics data of Aon Baltic, the number of accidents in 2014 increased by 22% (vs. 2013). Thus, not only the logistics companies but other market players, such as insurance brokers, have to react in an adequate way and to offer new ways of risk mitigation solutions to the logistics companies.

Aon Baltic is using Risk Mitigation Model which was appraised by many of the clients as a real risk cost saving tool. The Risk Mitigation Model is not limited to motor third party liability insurance but rather is a range of activities integrated into the whole risk chain of logistics companies.

If we take a retrospective look, 10 years ago the most important thing for logistics companies when choosing the insurance program was its

turnover in the freight transport by road category in 2013.

Profits in the industry soared by 42% in 2013, while profitability was up by five percentage points, reaching 18%. The surge in profits was stimulated by significant reductions in some cost segments.

Most notably, expenditure on refined petroleum products plummeted by 11% in 2013.

Lower usage of petrol and diesel was encouraged by various initiatives. One of them was the establishment of The Centre for Sustainable Road Freight in 2013. The centre was established in order to support research in sustainability of road freight.

Attractiveness Index of Road Passenger and Freight Transport Among Other United Kingdom Industries

‚Amber staff‘ takes part in International STUDIES Fair

One of the biggest problems I see generally in tourist promotion here is that the designer of the campaign is not advertising to foreigners, he is advertising to the home market, repeating the cliches which Lithuanians think are attractive to tourists (amber, pink soup, medieval history). Those cliches might make Lithuanians proud, but they are only attractive to a minority of tourists, and there are great things about Vilnius which should be emphasised before we bring out the amber necklaces. Amber isn't unique to Vilnius anyway, it's all over Polish adverts too!

I will bring an outsiders' eye to the promotion of Vilnius, and that in itself will make it more commercially effective and attractive.

Also maybe we should fix the pavements.

In February 2015 ‚Amber staff‘ took part in the International STUDIES Fair held at the Lithuanian Exhibition and Congress Centre LITEXPO. Many visitors were attracted to the company's stand where they got information about job opportunities in Lithuania and abroad. ‚Amber staff‘ presented temporary and full time job offers

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and provided key tips about CV writing. After a short introduction about the Lithuanian Labour Code, ‚Amber staff‘ offered a question and answer session on labour law. To conclude the event, visitors participated in a raffle and won some valuable prizes provided by the company.

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Barclays Technology Centre Lithuania wins the prestigious ‘Shared Services Firm of the Year – CEE' Award

CSC ranked as second best TOP Employer in Lithuania

Aviva Lietuva leads the way

TOP Employer 2014 awards. Two second places is such an inspiring and amazing result!” says Antanas Uršulis, Managing Director of CSC Baltic.

He continued:

With a market share of 20.41% Aviva Lietuva became the leader of the Lithuanian life insurance market last year.

“Becoming the market leader in the Life insurance market is a historic moment and is the result of our consistent and purposeful work for 13 years. The strong Aviva brand and our professional financial advisors, who promote long-term relationships with our customers, have given us the greatest competitive advantage in pursuit of the leader’s position”, said Asta Grabinskė, the CEO of Aviva Lietuva.

“I am as excited as a child, who just got the presents he wanted most. This is a grand evaluation of your input and great proof that CSC Baltic is the best place to work. Thank you all!”

Antanas Uršulis, CSC Baltic Managing Director, Ingrida Bartkienė, Communication Manager and Miglė Gudonytė, Recruitment Manager

According to her, leading the market is not only a sign of successful business growth, but also the sustainable performance of the company which has been felt by customers.

Barclays Technology Centre Lithuania (BTCL), based in Vilnius, is a center of excellence providing both IT and HR operations services to all Barclays’ business lines globally. BTCL is an integral part of Barclays’ global network, with many global teams being led from BTCL. BTCL was honored with the ‘Shared Services Firm of the Year – CEE’ award at the third annual ‘CEE Shared Services and Outsourcing Awards 2015’ held in Warsaw on 5th February. This event, run by BizPolska a leading Polish business media group, recognises excellence in the shared services and outsourcing sector in the Central and Eastern European region. Over 40 firms

were shortlisted across 26 categories. BTCL faced strong competition within their category, and are delighted to have won.

This award is formal recognition from industry peers of what BTCL has achieved since its inception in 2009 - the depth and breadth of services offered, its commitment to investing in, and developing local talent, and the sense of community at BTCL that makes it a great place to work.

At BTCL, the local leadership team, Mariano Andrade (Site Head), Irena Balkune, Juan Madroñero and Gediminas Mikaliunas are proud of the teamwork and dedication of their talented colleagues that made this award possible.

Substantial improvements in Northway Medical and Surgery Centre

Northway Holding, which operates medical and surgery centres in Vilnius and Kretinga, as well as the Baltic Medical Centre in London, is ready for more rapid growth.

From April 2015, Northway is ready to run three new modern and fully equipped operating theatres. Due to reconstruction, The Northway Surgery Centre has more space for a great variety of minimally invasive surgeries, including the fields of orthopaedics-traumatology, gynaecology, plastic-reconstructive surgery, vascular surgery and others. Moreover, new post-operative wards have opened to ensure the most comfortable postoperative care.

According to General Manager Diana Bumelytė, "minimally invasive surgery is one of the most rapidly developing medical fields, and that is why it is so important to ensure the best conditions for our patients, while developing our treatment opportunities”.

During the project, Northway Medical and

Surgery Centre was successfully reconstructed, and one entire new floor was built. Now, the centre offers even more modern medical equipment for the most accurate diagnostics to ensure innovative and effective treatment.

The Stem Cell Research Centre will be located in the reconstructed premises of the centre.

As Mr. Algirdas Ziogas, Doctor of Biochemistry, and General Manager of the Stem Cell Research Centre says, this new establishment is going to be an innovative and modern centre where longterm stem cell freezing and clinical trials would take place. Additionally, regenerative therapy through medical and engineering principles of cell biology, using aspects of damaged tissues and cell functioning is being developed.

In March 2015, another new Northway Medical Centre in Klaipeda was established. A wide spectrum of experienced medical specialists is ready to diagnose diseases and treat patients in the Klaipeda region.

Odontika becomes the first dental clinic in Lithuania to offer chair side Smile Design for CEREC Our CEREC specialists can take a Digital 2D photo uploaded to the 3D construction software with the Smile Design feature. This allows our patients to preview the final result and actively participate in choosing the colour, size, shape and transparency of restoration.

A single restoration (such as a crown) can be made in a 90 minute visit. The CEREC Smile Design Software can be used multiple teeth (bridges) and for full mouth restorations.

“We are not only the largest in the market by the scope of our activities in gross written premiums and new business annual premiums, but we are also the leader in the benefits paid to our life insurance customers”, Grabinskė added.

All things considered, record business volumes last year and excellent investment performance has generated a splendid financial return for Aviva Lietuva. The company’s post-tax profits grew by 22 % to €9.2 m.

Asta Grabinskė, CEO of Aviva Lietuva

Aviva Lietuva is part of the international Aviva group. The company has more than 255,000 customers, served by 500 professional financial advisers all over Lithuania.

KTU Career Days: it is worth to invest in young people

On 24th February the largest career fair in the Baltics – Kaunas University of Technology (KTU) Career Days 2015 took place in the Zalgiris Arena. The fair invited not only KTU students, but also students from other universities and cities in Lithuania.

Dainius Aksinavicius, IT Services Director from Callcredit Operations (main sponsor for the KTU career fair) commented in his opening speech that it is a mutually beneficial when a young person

Raidla Lejins & Norcous: Notarial Certification Requirement for Real Estate Acquisitions Through Share Deals Real property transfers can take the form of

starts to work in a company, both young people and experienced employees build proficiency by working together when sharing their knowledge and learning.

‘The KTU Career Fair for us all at Callcredit as socially responsible business is very much a crucial event. We appreciate synergy of education and business. By participating in events like this it enables us to present Callcredit to a wider academic audience, to share our experience and invite students to start an internship with us and gain valuable first work experience’ – Dainius Aksinavicius commented.

According to Dainius, straight after Callcredit opened an office in Lithuania in 2012, the KTU Career Fair was one of the focus events and Callcredit has sponsored the event each year since.

More than 130 enterprises, international companies and public organisations participated in the career fair together with thousands of students from Kaunas universities and schools.

CSC was nominated for the Lithuanian TOP Employer 2014 awards. Out of 300 applicants CSC became the first runner up in both the IT Sector category and in the Overall category. This achievement raises the bar even higher for CSC Baltic.

"Colleagues, co-workers, friends; today is a great day as a result of achieving great results at the

The competition winners were announced as the result of a CV Online survey where participants could vote for their preferred employer.

Respondents rated companies according to various criteria. The three most important criteria were stability and visibility, reputation, and working conditions.

Hard work has led to success “This success is the result of a huge effort.

We have recruited talented specialists, we are constantly working with prospective talents, and we have initiated programs to spread the word of CSC's values and strengths. All these activities continue to reinforce the company’s message: 'Amazing Works Here'” Antanas concluded.

A new treat: Golf & Spa Membership at Vilnius Grand Resort

Golfers are passionate about their game; they do not only play golf, but also talk and even dream golf! Nevertheless, it is known that to be successful at the game, an extremely good

balance between mind and body is required. With our Golf & Spa membership, we have combined what every golfer should be looking for: play the V Golf Club championship golf course whenever they like and unwind and relax at the Oasis Spa & Gym. Whilst the golf course will challenge the golfer during their round, the Spa facilities comprising a 20-meter indoor swimming pool, a whirlpool, a sauna and a steam bath will help to revive and regenerate their state of mind and their body. On top of that, in the fitness room, there is a vast array of state of the art Technogym equipment for a range of exercise options to tone up the body, as golf is an endurance game. The annual membership will allow you to train during the winter months and play exceptional golf during the golf season; the perfect combination for the modern golfer!

Children – the World's Greatest Possesion

SORAINEN Transport Sector Group delivers tailored solutions for transport clientele In today’s business environment lawyers are expected to speak the clients’ language, providing commercially savvy legal advice. To meet client needs SORAINEN has launched sector groups focused on specific business sectors (industries).

Dedicated lawyers combine their different legal practice knowledge with industry-specific knowhow. As a result, they have strong commercial awareness and are able to deliver tailored solutions to clients in relevant sectors.

Recent years have seen a remarkable growth in the number of SORAINEN Transport Sector Group's clients, especially in the aviation portfolio.

We represented leading worldwide aircraft leasing company AWAS in a lease termination and aircraft repossession case; advised a Lithuanian based air carrier on establishment and licencing of a tour operator; represented French and Dutch domiciled companies in aircraft sale transactions; advised a potential non-EU investor on ownership Senior associate Laura Čereškaitė-Kinčiuvienė, and control requirements in an EU carrier; head of the SORAINEN Transport Sector Group consulted Delta Air on aircraft liens and other regulatory issues; and advised a Lithuanian based and related sectors, including the aviation, airline on crew taxation and other issues. maritime, logistics, automotive, travel and postal services, while car dealers and rent-a-car The SORAINEN Transport Sector Group is companies such as Scania, Nissan and Litideal constantly advising clients in all transport modes (AVIS) are permanent clients.

Simona Oliškevičiūtė-Cicėnienė, Managing Associate, Head of Real Estate and Infrastructure Practice Group of Raidla Lejins & Norcous

The beginning of 2015 was marked by a new legislative development in the real estate deals market, causing all parties to reconsider the most suitable structure for the deal. On 1st January 2015, amendments to the Civil Code of Lithuania entered into force introducing a requirement for notarial certification of transfers of shares of private limited liability companies (UAB) involving the sale of more than 25% of all shares, or for transfers valued above €14,500.

New Conference Team Member at BEST WESTERN Hotel Vilnius Best Western Hotel Vilnius is happy to introduce a new team member, conference manager Kristina Krisiūnaitė. Kristina has gained a lot of experience in her previous positions working in the tourism and conference sector; organising events and tournaments for people and organisations from different cultures. Kristina only joined the company weeks ago, but has already brought many new and creative ideas about how to follow the needs of guests in order to create successful events, leading to happy clients and a profitable business. As Kristina says: be ready for the worst, but always hope for the best.

The Best Western Hotel family connects more than 4,000† hotels in over 100†countries and territories worldwide. There are two Best Western hotels operating in Lithuania: BEST WESTERN Vilnius and BEST WESTERN Santaka in Kaunas.

Kristina Krisiūnaitė, conference manager at Best Western Hotel Vilnius.

Leinonen Lithuania expands its tax advisory services

Algirdas Kviklys, Senior Advisor, Leinonen Lithuania

Last year Vilnius Montessori pre-School was very fortunate to have acquired a new member of academic management – Ms Needra De Silva joined us as our Academic Director. Originally from Sri Lanka, she has brought a wealth of experience in running her own school, as well as working as an on-site teacher trainer in the USA, India and Egypt.

Together we have launched Parenting Workshops open to present, past, and future parents, teachers and anyone who is interested in the "Man of Tomorrow". Our teacher training program in the Montessori Method of Education begins this Spring. Join us to understand the sensitive periods of development in early childhood.

Vilnius Montessori pre-School has been successfully running for 5 years, building an international community of young students that will

become “a society by cohesion” in Maria Montessori’s words. Young Montessori students are eased into becoming capable social beings by observing their teachers’ conduct, and discussing social graces as opposed to listening to words of instructions. Our young students teach themselves –the teacher only directs the child on the path to self-formation in a prepared environment with self-correcting hands-on materials. Learning to accomplish to satisfy the child’s inner need makes it unnecessary for the child to please the adult.

The focus on the independent learning skills develops as the child is invited to take a wide range or independent choices concerning the proposed learning subjects. At the VMS we try to control the environment rather than control the child. Visitors are welcome to sign up for Montessori Work Cycle observations.

transfers of property title (asset deals), or transfers of shares of the entity holding title to property (share deals). The latter is considered a more suitable alternative for commercial property deals.

This means notarial certification and the resulting fees can be avoided (currently, 0.4% to 0.5% of the deal value, capped at €5,792.40).

Those considering a share deal must, inter alia, take into account that involvement of a public notary will make the process more time-consuming and will require coordination of the terms of the deal with an additional party. Nevertheless, this option should not be completely ruled out, as it holds other pros, but the parties should exercise greater caution and care.

Raidla Lejins & Norcous’ Real Estate & Infrastructure Practice Group has a strong track record representing and advising local and international companies and private equity funds, as well as the Government of the Republic of Lithuania on strategic national projects, mergers & acquisitions, joint ventures, reorganisations and other sophisticated transactions. Areas of expertise include all aspects of real estate and construction law, as well as infrastructure and energy law.

Tax

Leinonen Lithuania is pleased to announce that Algirdas Kviklys, has joined their advisory unit, as a senior tax advisor, after gaining his tax consulting experience at one of the 'Big 4' companies.

Algirdas gathered years of tax consulting experience while being engaged in significant tax optimisation and tax risk management projects. He has a great knowledge of taxation issues relating to international trading and other transactions. Algirdas has provided tax consulting services to entities operating in a variety of sectors, including finance, insurance, retail, production, construction, transport and energy. One of Algirdas' main areas of specialisation is indirect taxation and the application of the Union Customs Code.

A.Kviklys states “Leinonen Lithuania aims to provide clients with full support on their activities and focuses on both local and international taxation. I am pleased to join Leinonen Lithuania's team and being able to support its tax advisory practise. We not only ensure relevant and efficient tax compliance for our existing clients, but we are also ready to offer comprehensive cooperation with Lithuanian and foreign entities to help them deal with their complex tax issues. Please do not hesitate to contact us for a discussion”.

BCC paper issue No 50

BCC paper issue No 50

Presenting New BCC Members

14

Kristina Mataitiene, Director Lithuanian company MB “Inku dovanos" was established in 2013 and is one of few companies in Lithuania importing alpaca wool clothing and accessories from Bolivia, Peru and Ecuador. We offer exceptional quality and design products made from 100% and 50% alpaca wool.

Alpaca wool is one of the thinnest and softest wools.

It is distinguished by its beautiful sheen. Alpaca hair is composed of hollow cells which give it excellent thermoregulatory properties. Alpaca wool fiber is ideal when it's cold, but conversely, it is not too hot in spring time or even on cooler summer days.

Alpaca wool clothes are very light, soft and durable.

As alpaca wool does not contain lanolin, it does not collect dust and allergens, making it ideal for allergy sufferers, especially children.

Alpaca wool resists dirt, the special structure doesn’t allow bubbles to form, so alpaca wool clothes will last for many years.

MB “Inku dovanos” works with Latin American enterprises involved in fair trade and that avoid exploiting their employees. As a result, our customers are able to support the development of third world countries.

“Inku dovanos” currently has its own e-shop whilst simultaneously working with partners from boutiques in Klaipeda and Vilnius. Alpaca wool clothing can be seen on our website www.inku-dovanos.com/en/ In the future, “Inku dovanos” is planning to expand our assortment of products by importing clothing sewn from alpaca wool fabrics and other natural materials such as cotton. These products will be added to our existing range of knitted clothes.

The company not only has plans to expand operations in Lithuania, but also in other markets. Great Britain is seen as providing the best opportunity for expansion abroad because of its large market and the suitable climate for alpaca wool production.

Company Contact details: Address: Laukininku str. 23-26, Klaipeda, LT - 95177, Lithuania Tel. +370 611 10375 E-mail: info@inku-dovanos.com; kristina.mataitiene@gmail.com www.inku-dovanos.com/en/

BCC Small Company member STAY, business & leisure concierge

AVIVA Lietuva Life insurance and pension funds www.aviva.lt

Phoenix Contact UAB is an innovative electrical engineering solutions provider for many industries, including the energy, transportation and infrastructure sectors.

Phoenix Contact UAB was established in 2005 and serves the Lithuanian, Latvian, Estonian and Belarussian markets. The company's regional headquarters are based in Vilnius,with additional local offices in Tallinn, Riga and Minsk which have been designed to offer innovative presentations, training and technical support for our customers and partners. As part of Phoenix Contact's wider global commitment, the localised approach enables us to be focused and proactive in our response to our diverse customer base and their rapidly changing needs. It also gives us the ability to support modern logistics techniques and operations.

Phoenix Contact's global headquarters are located in Blomberg (North Rhine-Westphalia, Germany). The company offers the largest range of device connection technology and with it, the ideal solution for every manufacturer. Phoenix Contact products are used in all manner of applications where processes need to be automated, and data flows have to be connected,

distributed and controlled. These products would be ideal for industrial production sites and solar plants, as well as in building technology, and for tunnels or water supply systems. The benefits to the customer often go far beyond the mere function of the device, because we help them to design more efficient processes and to reduce costs.

Each industrial sector has unique requirements for machine and system automation. In our dedicated industry teams, we work together with our partners and focus on these challenges. This is how we design tailor-made turn-key solutions based on innovative products and intelligent engineering services. In this way, with the knowledge and enthusiasm of our employees, we find the best possible solution for many sectors of industry. With 60,000 products, together we can find your solution.

Company contact details: Address: Svitrigailos str. 11B LT- 03228 Vilnius, Lithuania Tel: +370 5 210 6321 E-mail: balticinfo@phoenixcontact.com www.phoenixcontact.lt

Recent changes in BCC Board and upcoming elections for the 2015-2017

Jolita Surgutanovienė & Daiva Rauktytė, Founders Have you ever thought about sharing organisational and administrative tasks with professionals who can guarantee you high quality service, and responsible and mature problem solving capabilities? There is no doubt that every organisation has to deal with visiting guest, team and partner events, as well as important business meetings from time to time. And when that happens, somebody from the team is forced to cease their everyday duties in order to make the necessary arrangements. Then it’s all about time and access, and time is the one thing we all lack nowadays.

By outsourcing some of the administrative responsibilities to STAY company management, you will be able to dedicate more of your business hours to focus on your primary business activities and targets.

Our customised programs provide a cost effective solution for administrative needs and encompass any task which can be managed or coordinated by using today's technology. We can arrange travel and hospitality for you and your clients, or VIP guests

including transportation services, private trips, flights, accommodations and entertainment. We can also coordinate business retreats, which incorporate team building, cultural events, and customised and recreational tours around Lithuania. Our ability to search and arrange services from different vendors makes this list endless. We work closely with carefully selected partners and are proud to provide exclusive and high quality services for busy businessmen.

We strive to become a close friend of your business, that knows you really well and can help you with various organisational, administrative and personal tasks. We believe that this presents an opportunity for a mutually beneficial and long-lasting relationship and we look forward to hearing from you.

Company contact details: Website: www.stay.lt E-mail: js@stay.lt Tel. +370 698 32775

After 4 active years in Lithuania, BCC Board member Frank Reul has been appointed as Area General Manager Romania - Bulgaria – Macedonia and left Lithuania. In his resignation letter to the BCC Board Frank said: “I would like to thank you for the opportunity to work with the Chamber, it was a privilege to work with each of you and I am very confident that the British Chamber of Commerce in Lithuania will go from strength to strength in new few years. Keep up the good work”.

The British Chamber of Commerce in Lithuania would like to thank Frank for his input as a Board member and wish him the best of luck and success.

On April 14th, the new Board for 2015 – 2017 will be elected at the BCC 16th Annual General Meeting. The new Board will be presented in the next issue of the BCC paper to be published in the end of June.

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BCC Sponsor Members

BCC Corporate Member Phoenix Contact UAB

BCC Small Company Member Inku Dovanos, MB

List of BCC Members

Bunnahabhain rep. by Mineraliniai vandenys, UAB Production of single islay malt Scotch Whisky www.bunnahabhain.com

Carlson Wagonlit Travel Corporate travel management www.carlsonwagonlit.lt www.kalevatravel.lt

DNB bankas Banking www.dnb.lt

GlaxoSmithKline Pharmaceuticals www.gsk.lt

PricewaterhouseCoopers Assurance, Actuarial, Advisory, Tax and Legal services www.pwc.com/lt

Strategic Staffing Solutions International Provider of information technology solutions.

Recruitment Services www.strategicstaff.com

Tark Grunte Sutkiene Full-service business law firm in the Baltic region and Belarus www.tarkgruntesutkiene.com

BCC PR Partner

BCC Accounting Partner

BCC Corporate & Group Members

AON (www.aonbaltic.lt/) / Risk management, insurance and reinsurance brokerage ARIJUS (www.arijus.lt ) / Transport and Logistic services AVIS Rent a Car & Leasing Company (www.avis.lt) / Car rental and leasing ĄŽUOLYNO Clinic (www.azuolynoklinika.lt) / The first private clinic in Lithuania for psychological problems, psychiatric disorders, alcohol and drug addiction treatment, long – term nursing. Patients can be consulted or hospitalised.

BALTIC AMERICAN MEDICAL & SURGICAL CLINIC (www.bak. lt )/ Health Care

BALTIC SURVEYS (Baltijos Tyrimai, UAB) (www.gallup.com) / Market research BANKSERVIS, UAB (www.bankservis.lt) / Bank and office equipment, security products and solutions BARCLAYS Technology Centre Lithuania (http://www. lifeintechnology.co.uk/global-locations/vilnius-lithuania/) / one of strategic IT engineering centres providing support for Barclays business activity worldwide.

Best Western HOTEL VILNIUS (Naujasis Vilnius, UAB) (www.vilniushotel.eu) / Centrally located Hotel, restaurant, conference centre, fitness centre, swimming pool and sauna BITĖ LIETUVA, UAB (www.bite.lt) / Telecommunications BIURO PASAULIS, UAB (www.biuropasaulis.lt) (www.elektromedia.lt)/ /Office supplies, printing management and IT solutions BNTP, UAB (www.bntp.lt) / Private equity investment; real estate development and investment; asset management; project management; facilities management.

British Council (www.britishcouncil.lt) / the United Kingdom’s international organisation for cultural relations and educational opportunities.

CALENBERG Vilnius | STEELCASE (www.calenberg.lt) / International moving/ relocation and dealership of the office furniture- STEELCASE CALLCREDIT OPERATIONS, UAB (www.callcreditgroup.com) / Experts in the fields of credit referencing, marketing services, consumer information, interactive solutions and consultative analytics.

CAMIRA FABRICS Ltd (www.camirafabrics.com) / Contract seating & transportation fabric manufacturer CAMPANILE Vilnius Airport Hotel (http://www.campanile. com/en/hotels/campanile-vilnius-airport) / hotel, European cuisine restaurant „Le Restaurant“, Lounge bar, conference center, modern Camper Parking with state of the art facilities COMFORT HOTEL (www.comforthotel.lt) / Hotel COLEMONT (www.colemont.lt) / Insurance broker, an authorised Lloyd‘s coverholder CSC Baltic, UAB (www.csc.com/lt) / IT services and outsourcing DELOITTE (www.deloitte.lt) / Audit. Tax & Legal. Consulting.

Financial Advisory. Enterprise Risk Services DELTA MANAGEMENT SOLUTIONS, UAB (www.deltamanagement.lt )/ Recruitment, Executive Search, Temporary Staffing, Employment Services, Personnel Testing & Assessment, Greenfield Staffing Support EKO RIVI, UAB (www.ekorivi.lt) / Consultancy in municipal and environmental infrastructure EUROMONITOR INTERNATIONAL (www.euromonitor.com ) / Provider of strategic market research on countries, consumers and industries EVERSHEDS SALADŽIUS (www.evershedssaladzius.lt) / Legal services G4S Lietuva, UAB (www.g4s.lt) / Security Solutions covering cash handling, guarding, electronic security, system maintenance, installation, courier service.

GrECo JLT Lietuva, UADBB (www.greco.lt ) / Insurance intermediation GLIMSTEDT (www.glimstedt.lt) / Legal services GRANT THORNTON RIMESS (www.grantthornton.lt ) / Assurance, internal audit, tax advisory, legal advisory, corporate finance, and accounting services GROTTHUSS HOTEL (www.grotthusshotel.com/) / Hotel NEW! HIGHLIFE, UAB / Manufacturing for export timber components for the furniture and construction industries.

ISM University of Management and Economics (www.ism.lt) / Higher education JURIDICON, Law Firm (www.juridicon.com) / Legal services, tax consulting, corporate services, legal project & risk management. Member of Warwick Legal Network.

KAREN MILLEN (www.karenmillen.com) / retail, women clothing Kempinski Hotel Cathedral Square (http://www. kempinski.com/vilnius) / 5 star luxury hotel in Vilnius KERNAVĖS BAJORYNĖ, Conference and Leisure Centre (www.kernavesbajoryne.lt )/ Conferencies, leisure and other activities KLAIPĖDA FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.fez.lt) / Management and development of Klaipėda Free Economic Zone KLARGLASS, AB (www.klarglass.lt) / Glass processing & container glass manufacturing KPMG Baltics, UAB (www.kpmg.lt ) /Audit, Tax, and Advisory services LawIN law firm (www.lawin.com) / LAWIN is a leading and internationally highest ranked business law firm in the Baltics.

LEINONEN, UAB (www.leinonen.eu) / Accounting services LLOYD’S (www.lloyds.com) / Insurance and reinsurance MOTIEKA & AUDZEVIČIUS, Law Firm (www.ma-law.lt) / Legal services NORTHWAY (www.nmc.lt) / Private medical centre NOVOTEL VILNIUS CENTRE (www.accor.com) / Hotel services ODONTIKA (www.odontika.com) / Dental surgery OMNITEL (www.omnitel.lt) / Telecommunications PHOENIX CONTACT (www.phoenixcontact.com) / manufacturer of electric connection and industrial automation technology NEW! PERITUS SPRENDIMAI (www.peritus.lt) / EU funding, Project Management, Public Procurement, Strategic Research, PPP

PROVIDENT FINANSAI (www.provident.lt) / Personal credits provider and responsible lender PUBLICUM, UAB (www.publicum.lt) / Public Relations, Public Affairs, Management consulting and training PZU Lietuva, UAB DK (www.pzu.lt ) / Insurance RADISSON BLU Lietuva HOTEL (www.radissonblu.com/ lietuvahotel-vilnius)/ Hotel, biggest centre located Conference and Event centre, Riverside restaurant, Skybar, Lobby bar, fitness centre and sauna RADISSON BLU Royal ASTORIJA Hotel (www.radissonblu. com/hotel-vilnius) / Hotel, French restaurant „Brasserie de Verres en Vers“, Astorija Bar, Meetings & Events center, Catering services, Health club with swimming pool RAIDLA LEJINS & NORCOUS (www.rln.lt) - Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus Ramada Hotel & Suites Vilnius (www.ramadavilnius.lt) / Luxury hotel REGUS (www.regus.lt ) / The world leading provider of pioneering workplace solutions, with a large range of products and services from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios.

SCHAGE Real Estate (www.schage.lt) / Real estate development company. Investing in, renting and selling premises for office, residential and commercial use SHAKESPEARE Boutique Hotel (www.shakespeare.lt) / Boutique hotel, Sonnets restaurant, Globe bar, conference halls SORAINEN (www.sorainen.com) / Legal services in all fields of business law in the three Baltic countries and Belarus STOREBRAND BALTIC, UAB (www.storebrand.com ) / Shared service center for Storebrand ASA in Norway and SPP in Sweden. Financial services within life- and health insurance, banking and asset management.

SUE’S INDIAN RAJA (www.suesindianraja.com) / Indian Restaurant TRANSCOM Worldwide Vilnius (www.transcom.com) / International provider of outsourced services and solutions in the field of customer contact (client relationship management & credit management). Near shore outsourced services from Lithuania to UK and other European countries.

VANAGUPĖ HOTEL (www.vanagupe.lt) / 5* Hotel, Modern Conference centre and luxury GOLDEN Spa centre, gourmet cuisine restaurant L’Ambra Rossa VARUL, Law firm (www.varul.com ) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus Vilnius Grand Resort (www.lemeridienvilnius.com) / 5 star Hotel, 8.000m2 Conference Centre, Catering Services, Spa, Fitness Centre, Leisure, PGA design Golf course, Over the water restaurant, Real Estate WESTERN UNION Processing Lithuania UAB (www. westernunion.com) - Financial Services ZABOLIS PARTNERS (www.zabolis.com) / Finance and Real Estate WEST EXPRESS (http://www.westexpress.lt/) / Travel agency, providing and organising professional business and leisure travel services

Small company/NGO Members A Hostel ( www.hostelsvilnius.lt) / Accommodation Services AMBER STAFF (www.amberstaff.com) / Temporary staffing and employee leasing ANGVILA / Wholesale supplier of eels to Lithuania and the European Union BALTIC FILM SERVICES (http://bfs.eu.com) / Film and television production BCS INTERNATIONAL (www.bcsinternational.net) / The Behaviour Change Specialists, are an international people development organisation, dedicated to the practical use of emotional intelligence to improve individual and team performance.

DEKONA, Evaldo Darškaus IĮ (www.dekona.lt) / Management Consulting: Operational efficiency, Lean, Six Sigma, process improvement D & T Global - Developer of real eastate EUROCONTINENTAL Limited / Textiles FINREDA, UAB (www.finreda.net) / Corporate services provider.

Legal, financial and business consulting & services including translations to Lithuanian and foreign companies GENCS VALTERS, Law Firm (www.gencs.eu ) / full service, general practice international business law firm with offices in Riga, Tallinn and Vilnius focused on tax, litigation, M&A, corporate, immigration, finance and intellectual property law GROWING TALENT (www.growingtalent.eu) / Providing executive coaching, and delivering training for leadership and talent development Inkų dovanos (www.inku-dovanos.com) / Clothes from the alpaca wool NEW! LONDON INTERNATIONAL SCHOOL OF LANGUAGES (www. londonisl.com) / Business courses, specialized training for both IELTS and TOEFL university admission exams LitCapital Asset Management (www.litcapital.lt) / independent professional private equity fund management MAGISTRAI (www.magistrai.lt) / Translation and interpretation services

MYKOLO ROMERIO UNIVERSITETAS (http://www.mruni.eu) / higher education VILNIUS MONTESSORI PRE-SCHOOL (www.vms.lt) / International Montessori environments based on Dr. Maria Montessori’s humanistic philosophy and approach, specializing in Early Childhood Education and Parent Education QUANTUM CAPITAL (www.qcapital.eu ) / Investment banking & strategic advisory boutique RAIMDA Auditas (www.raudit.lt) / Audit SORPS (www.sorps.eu) / International web technologies STAY (www.stay.lt) / Business & leisure concierge NEW! TAURAGĖ INDUSTRIAL PARK (www.tip.lt)/ Industrial premises for rent in Southwest Lithuania V. Paulius & Associates (www.vpa.lt/) - Real Estate NEW! VILNIUS INTERNATIONAL SCHOOL (www.vischool.lt) / International Baccalaureate World School. Early childhood education, primary and middle school.

VINKLERIS and partners (www.legalconsulting.lt/) / international law firm providing legal advice regarding taxes, company establishment and competition, as well as family and labor law issues OVERSEAS MEMBERS Overseas members Baltic Holidays (www.balticholidays.com) / Tour operator in the UK specializing in Lithuania, Latvia & Estonia ELCENTRA LTD (www.elcentra.com) / E-learning planning and development NORMA FOSTER LTD / business consultancy on export communications, sales and reputation in international markets TODAY TRANSLATIONS (http://www.todaytranslations.com) / translation, interpreting services

BCC Social Members Chris Butler Christian Ranft Geoffrey Cohn (Life Member) Hugh Miles Thomas OBE, FCA Dr Helene Ryding Jūratė Rusteikaitė – Bakšienė Mark Whittle Mervyn Richardson Michael West Ron Sheppard Sigitas Žutautas

BCC Board 2013-2015 Honorary President David Hunt HM Ambassador to Lithuania Chairman Chris Butler BCC Social member Field of interest in the board – Events Algirdas Pekšys SORAINEN Field of interest in the board - Goverment relations, Trade & Investment promotion Alistair Day-Stirrat Odontika, Dental Surgery Field of interest in the board - BCC paper Asta Grabinskė AVIVA Lietuva Field of interest in the board – Government relations Ben Harvey Growing Talent Field of interest in the board – CSR Rimantas Tuskevičius Eko Rivi UAB Co-opted member of the Board Nick Price Bright Purple Resourcing Field of interest in the board – Trade & Investment promotion, Events Robertas Juodka Law Firm VARUL Field of interest in the board - Trade & Investment promotion, Membership Toma Vevelstad Amber Staff Field of interest in the board – Membership Viktorija Trimbel Quantum Capital Field of interest in the board – Trade & Investment Promotion Observer Ieva Binkauskaitė British Embassy, UK Trade and Investment Section

A beautiful face is an index of oneâ&#x20AC;&#x2122;s personality and class AND LIKEWISE A beautiful restaurant is an index of its quality and class

Bears the hallmark of both the characteristics indicated above

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WE DO HOME DELIVERY TOO, NO CHARGE UP TO 15 km Odminiu Street 3 (opposite the Cathedral), Vilnius LT 01122, Tel. (370 5) 2661887 / 2661888, Mobile (+370 6) 5599511 / 7771720/ 7642918 www.suesindianraja.lt, email: suesrestaurants@gmail.com