Energy and FDI viewed as potential areas of Polish-Lithuanian co-operation

Potential areas of co-operation between Poland and Lithuania indicated by the Ministry of Entrepreneurship and Technology are energy, development of direct and infrastructural investments and thermal insulation of buildings.

"Energy security, including measures for connecting the electricity and gas transmission systems of Poland and Lithuania, have an important place among the priorities of economic policy," the Entrepreneurship and Technology Ministry wrote on its website.

According to the ministry, Lithuania belongs to the group of countries with which Poland has the highest trade surplus. The export advantage over imports reaches 60 percent.

The commodity structure of Polish exports to Lithuania (according to 2016 data) is dominated by chemical products - about 22 percent, including plastics, about 10 percent, electromechanical industry products - about 24 percent, agri-food products - approximately 21 percent and metallurgical industry products - about 10 percent, the ministry said.

Poland imports from Lithuania mainly mineral products (including fuels and oils) - approximately 20 percent, chemical industry products - about 24.5 percent and agri-food products - about 23 percent.

According to preliminary data for 2016, Lithuania is Poland's 15th largest trading partner in the European Union and 21st in the world in terms of turnover, with a share of 1.4 percent in Polish exports (19th place in the world, 15th in the EU) and 0.7 percent share in imports (28th place in the world, 18th in the EU).

Poland, on the other hand, is one of the most important trade partners of Lithuania. It is the third largest (after Russia and Germany) supplier to Lithuania, with a share of 10.8 percent in imports and the third export market, with a share of 9 percent.

According to Lithuanian statistics, Polish investment was estimated at EUR 958 million (7.3 percent of foreign investment in Lithuania in total) at the end of 2016.
Poland is the fourth largest investor behind Sweden, the Netherlands and Germany.

According to Poland's central bank NBP data, Polish investments in Lithuania amounted to EUR 791.8 million and, at the end of 2015, accounted for ca. 3.6 percent of Polish capital invested abroad.

In 2006, the largest foreign transaction by a Polish company so far was finalised - the purchase of a Lithuanian refinery in Mazeikiu by fuel concern PKN Orlen, for which the concern paid some USD 2.34 billion.