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PM resigns amid corruption scandal, protesters criticise response

DATE POSTED : 11.08.2025

(Photo by Ukrinform/NurPhoto via Getty Images)

Introduction

Prime Minister accused of unethical financial dealings, resigns

On 31st July 2025, Lithuanian Prime Minister Gintautas Paluckas resigned amid growing pressure over a series of alleged unethical financial dealings. His resignation automatically triggered the dissolution of the cabinet and was accompanied by his departure as leader of the ruling Social Democratic Party (LSDP).

The move followed a two-week ultimatum issued by President Gitanas Nausėda in response to the scandal, which had erupted in May and sparked an official financial crimes investigation. Coalition tensions reached a breaking point when Parliament Speaker Saulius Skvernelis threatened to withdraw his party from the government unless Paluckas stepped down. While Paluckas denies any wrongdoing, he stated that his resignation was necessary to prevent “bogging down the work of the government”.

The political crisis was fuelled by a series of investigative reports released in May and June. The first report revealed that during his time as Prime Minister, Paluckas was connected to a €200,000 low-interest loan awarded by Lithuania’s state-owned development bank to Garnis, a company in which he held a 49% stake. A second investigation exposed his longstanding ties to businessman Darijus Vilčinskas, including a 2012 apartment purchase from Vilčinskas’ company and a controversial 2018 Vilnius council deal to buy a property from a Vilčinskas-linked firm for €6 million—raising serious conflict-of-interest concerns.

In July, further scrutiny brought up unresolved issues from Paluckas’s past. In 2012, he was convicted of abusing his position while overseeing rat extermination contract bids for the city of Vilnius. Lithuania's top court found he had unlawfully favoured the highest bidder. Although sentenced to two years in prison, the sentence was suspended and he served no jail time. Paluckas was also fined €16,500 for the offence, but has reportedly never paid the full amount. Most recently, it was revealed that a company owned by his sister-in-law allegedly used EU funds to purchase battery systems from Garnis, the above-mentioned firm in which Paluckas holds partial ownership.

In the wake of these revelations, former Prime Minister Ingrida Šimonytė publicly called for Paluckas to step down.

Lithuania issues formal diplomatic complaint against Russian bombing of Ukraine

Lithuania continues to issue diplomatic protests against Russian bombings and drone attacks in Ukraine. On 27th May 2025, the Ministry of Foreign Affairs of Lithuania delivered a note of protest to the Russian embassy, stating that “Lithuania strongly condemns the killings of unarmed Ukrainian servicemen and the intensified missile and drone attacks on Ukrainian cities.” The statement also called Russia’s actions “war crimes” and urged that “all those responsible for these crimes will sooner or later be held accountable for their actions."

On 17th June 2025, Lithuania issued a formal diplomatic protest following one of Russia’s most destructive aerial bombardments in Ukraine. The Ministry of Foreign Affairs described the attack as “deliberately targeting civilian infrastructure.” On 7th July 2025, Lithuania summoned the chargé d’affaires ad interim of the Russian Embassy in Lithuania to further protest Russian shelling in Ukraine. The Ministry urged Russia to “immediately cease its illegal aggression against Ukraine, stop all military actions, withdraw its armed forces, and compensate Ukraine for all the damage caused by Russia’s military aggression.”

Lithuania advocates for stronger EU and NATO actions against Russia

In the face of mounting evidence of Russian covert activity and aggression in the Baltic region, Lithuania has continued to be a vocal advocate for stronger EU action and a greater NATO presence. On 19th May 2025, Lithuanian Defence Minister Dovilė Šakalienė called for the European Union to impose sanctions on all vessels belonging to Russia’s so-called shadow fleet. Later, on 9th July 2025, Minister of the Environment Povilas Poderskis echoed this call at an informal meeting of EU ministers, highlighting the growing threat posed by the Russian shadow fleet in the Baltic Sea. Poderskis argued that unregulated Russian oil tankers “threaten navigation safety and undermine sanctions enforcement.”

On 22nd May 2025, German Chancellor Friedrich Merz inaugurated Germany’s first-ever permanent foreign brigade in Lithuania, which is “meant to help protect NATO’s eastern flank” and declared that “the security of our Baltic allies is also our security” as concerns about Russian aggression persist. In the announcement, Chancellor Merz stated, “We will defend every inch of NATO territory” and reiterated the alliance’s commitment to regional security in response to growing Russian aggression.

Lithuanians on Russian payroll

In May 2025, leaked files revealed that several Lithuanian politicians and lawyers were allegedly on the Kremlin’s payroll. The illegal funding is believed to come from an organisation known as Pravfond, established in 2011 by Russian President Vladimir Putin and overseen by Russia’s Foreign Ministry, which, according to public broadcaster LRT, “provides funding to individuals working abroad on behalf of the Kremlin, including spies, propagandists, and various other pro-Russian activists, as well as lawyers defending them in court cases.”

Danish public broadcaster DR obtained a cache of 49,000 emails and 22,000 attached documents, revealing that a number of Lithuanian citizens received support from Pravfond. Among those named was lawyer Ryšardas Burda, known for defending individuals in the so-called “13th January case”, which involves people accused of crimes against humanity in connection with the Soviet suppression of the Lithuanian independence movement in 1991. Others named include Stanislovas Tomas, a controversial figure and former MEP candidate who previously fled Lithuania for Belarus, and Edikas Jagelavičius, an associate of Algirdas Paleckis, an ex-politician who is currently serving a prison sentence for espionage on behalf of Russia.

Seimas Speaker Saulius Skvernelis declared on 28th May 2025 that Lithuanian authorities are actively monitoring and investigating politicians suspected of acting against national interests. He confirmed that both surveillance and formal inquiries are under way, which he claimed are a response to evidence suggesting the Kremlin “is buying [people,] from lawyers to politicians.” While no specific cases have yet been made public, Skvernelis affirmed his belief that the investigations will yield results.

Lithuania and Finland collaborate on landmine production

On 9th July 2025, Lithuania and Finland announced plans to co-produce anti-personnel landmines starting in 2026, citing “regional security needs” despite Lithuania’s previous commitments under the international Ottawa Treaty, which bans the production, stockpiling, transfer, and use of anti-personnel mines, and requires their destruction. This move prompted concern from the United Nations (UN), which voiced alarm at Lithuania’s withdrawal from the treaty and warned that it may set a dangerous precedent for international humanitarian law.

In response, Lithuanian Foreign Minister Kęstutis Budrys said that Lithuania would take all necessary measures to defend the country and that its commitment to responsible defence and international humanitarian law remained firm.

Freedom of Assembly

Protesters in Vilnius slam President’s response to PM scandal, demonstration against PM

Hundreds rallied outside Lithuania’s Presidential Palace on 31st July 2025, criticising President Gitanas Nausėda for his delayed response to Prime Minister Gintautas Paluckas’ ethics scandal. The protest, organised by the non-governmental organisation Lithuanian Liberal Youth, called on the president to show stronger leadership after Paluckas resigned amid a financial probe. Opposition politicians joined the demonstration, holding signs like “Tall, handsome, spineless” and quoting the constitution. Police monitored the peaceful rally. Protesters urged greater public involvement in forming the next government.

Earlier, on 8th July 2025, thousands protested in Vilnius over Paluckas’s alleged business conflicts of interest, demanding his resignation. The rally’s organisers included the organisation Democracy Forum and activist Mantas Meškerys, who had led previous anti-government demonstrations. “The prime minister had many chances to prove his innocence, take responsibility, and show leadership. But he failed,” university student Robertas Koroliovas, a representative of Democracy Forum, told reporters. “The fact that he didn’t show up today says more about him than it does about us.”

Protesters carried signs with slogans such as “No to a shadowy PM”, “We are not penguins”, and “Paluckas, don’t be like Trump.” Parliamentary Speaker Saulius Skvernelis, leader of the Union of Democrats for Lithuania (DSVL), called for clearer lines between business and politics and said that an investigation by the Chief Official Ethics Commission (VTEK) into the prime minister’s business entanglements would “probably tell us a lot.”

Pro-Palestine protests

On 4th August 2025, hundreds gathered in central Vilnius for a “Let Gaza Live” protest during Israeli President Isaac Herzog’s visit to Lithuania, calling for sanctions against Israel and condemning the humanitarian crisis in Gaza. Demonstrators waved Palestinian flags, beat drums, and chanted slogans such as “Stop the occupation” and “Shame on Nausėda.” A small group of pro-Israel counter-protesters briefly approached the rally, raising Israeli flags. Police intervened to prevent escalation, ordering the counter-demonstrators to move away. The protest remained peaceful under police supervision. One individual, controversial former local official Daniel Lupshitz, was detained for failing to comply with police orders.

Earlier, during the visit of Israeli Foreign Minister Gideon Saar to Vilnius on 1st July 2025, dozens of pro-Palestinian demonstrators gathered to oppose Lithuanian-Israeli relations and the war in Gaza. Protesters carried Palestinian flags and signs reading “This is not a war, this is genocide”, “Sanctions for Israel”, and “Children are not terrorists, hospitals are not battlefields.” Rally organisers urged Lithuania’s government to reconsider its stance on Israel due to “Israel’s continued violations of international law.” Protesters also called on Lithuanian authorities to “take a principled stand and impose targeted sanctions against Israel in response to its intensified military campaign in Gaza.”

Lithuania boasts strong Pride march turnout, falls in ILGA-Europe ranking

Thousands took part in the Baltic Pride parade in Vilnius on 5th July 2025. The march wound through the streets of the Lithuanian capital with rainbow flags, music, and speeches. Vladimiras Simonko, Chair of the Lithuanian Gay League (LGL), said that the LGBTQI+ community “is dissatisfied with politicians who avoid passing laws that are necessary for our community. That’s why this march will be both a protest and a celebration – that too is a form of protest.”

Meanwhile, Lithuania slipped one spot in the latest ILGA-Europe Rainbow Europe Index, published on 14th May 2025. Lithuania received only 24% of the possible score, ranking 36th out of 49. Simonko said that “this year’s ranking is a clear signal that symbolic victories are far from enough.” Simonko specifically pointed to the lack of progress made toward LGBTQI+ recognition and equality in Lithuania, citing “stalled legislative reforms, weak enforcement of hate crime laws, and the continued absence of legal recognition for same-sex relationships.”

The Rainbow Index notably does not account for a major development from early 2025, when the Lithuanian Constitutional Court declared that the failure to pass a civil partnership law was unconstitutional.

Freedom of Expression

Deputy Minister of Culture warns of Russian disinformation threat

On 13th June 2025, Polskie Radio published a segment on Russian disinformation, calling it “a weapon of war, deployed not just to mislead the global public, but to fracture alliances, erode trust in institutions, and confuse the battlefield itself.” The segment featured an interview with Lithuanian Deputy Minister of Culture Viktor Denisenko, who also touched on the threat of Russia’s military aggression in Ukraine.

Lithuania resumes Russian-Language Radio Svoboda broadcasts

Lithuania’s state-owned broadcaster Telecentras resumed rebroadcasting Radio Free Europe/Radio Liberty’s Russian-language service Radio Svoboda on 1st August 2025, after a two-month pause due to funding issues. The medium-wave signal reaches audiences within a 1,000-kilometre radius. Telecentras had previously covered costs temporarily before suspending broadcasts in June.

Prosecutors charge three with defacing monument

On 2nd July 2025, three residents of Estonia were charged with defacing a monument to Adolfas Ramanáuskas, one of the leaders of Lithuania's anti-Soviet resistance after World War Two. The monument was vandalised with red paint in an incident that Lithuanian authorities say was politically motivated and aimed at destabilising the country.

The accused face up to seven years in prison if convicted. In addition to “damage to a public place of respect”, they have been charged with assisting a foreign state to act against the Republic of Lithuania. As reported by Reuters, prosecutors allege that Russia’s GRU military intelligence service ordered the defacement in January 2024 as part of a broader pressure and destabilisation campaign. The suspects, all construction workers, were arrested in Estonia after a joint investigation involving the intelligence services of the three Baltic countries. They were reportedly paid between a few hundred and a few thousand euros to carry out the act.

This is one of numerous incidents of vandalism and sabotage in Europe attributed to an orchestrated campaign by Russian security services. As previously reported by the CIVICUS Monitor, Lithuanian prosecutors charged two people in March 2025 with an arson attack at a Vilnius IKEA store in May of the previous year, also reportedly on orders of Russia’s GRU.

Meanwhile, Russia has dismissed the accusations, claiming the investigation and trial are driven by Russophobia. Ramanáuskas has long been a point of contention between Russia and Lithuania—while he is honoured in Lithuania as a national hero for his role in resisting Soviet occupation, his legacy remains controversial internationally. Institutions such as the US-based Simon Wiesenthal Centre and the World Jewish Congress have condemned him as a Nazi collaborator and alleged his involvement in the persecution of Lithuania’s Jewish community following the Nazi invasion.

Hate speech probe investigates popular podcast

Lithuania’s Inspector of Journalistic Ethics launched a hate speech investigation on 8th July 2025 into a podcast episode hosted by comedian Dominykas Klajumas. The three-month investigation will determine whether the podcast mocked, disparaged, or otherwise targeted people with dwarfism. Meanwhile, according to Delfi, representatives of the dwarf community and the Disability Organisations Forum have announced they are preparing to file a criminal complaint with the prosecutor’s office, and Prosecutor General Nida Grunskienė has already reached out to the police to evaluate the statements made in the podcast. In response, the comedians who participated in the podcast have asserted that they had no intention to humiliate or disparage anyone with their jokes.

Civic Space Developments
Country
Lithuania
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Open
Category
Latest Developments
Tags
LGBTI,  protest, 
Date Posted

11.08.2025

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