Lithuanian court upholds exclusion of Istanas from defence procurement over national security concerns

A Lithuanian court has dismissed a legal challenge by Istanas, a company controlled by businessman Arūnas Tuma, upholding its exclusion from a defence ministry tender over alleged threats to national security, LRT reports.

The Regional Administrative Court ruled on 23 April that the Ministry of National Defence (KAM) lawfully withheld classified intelligence assessments from the company, which had been barred from bidding for a Lithuanian military logistics warehouse contract. The court found that Istanas had no legitimate claim to access restricted information justifying its removal from the procurement process.

In its decision, the court stated that the company’s argument—namely, that the withheld data was necessary for its business operations—did not override security protocols. “The circumstance that the applicant [Istanas] requests access to classified information to develop its activities does not negate the fact that Istanas is not an authorised recipient of such information,” the ruling read. The decision may still be appealed.

Istanas had participated in the military’s May 2023 tender for warehouse acquisition but was disqualified after defence officials cited assessments from “competent institutions” indicating risks to national security. The company subsequently sued KAM, demanding disclosure of the specific allegations linking its activities—or those of its controlling shareholders—to ties with Belarusian or Russian entities.

In its defence, Istanas claimed the lack of transparency hindered its ability to compete in public tenders and conduct commercial operations. It also argued that political bias may have influenced the decision, noting that Arūnas Tuma—a 50% shareholder via his family’s Kamineros grupė—has served since 2019 as a city councillor in Klaipėda, elected on the ticket of the Lithuanian Farmers and Greens Union. The company further highlighted its prior contract with Lietuvos paštas (Lithuanian Post), a state-designated entity critical to national security, as evidence of its reliability.

KAM countered that its decision relied on classified evaluations by the State Security Department, the Second Operational Service, and the Prosecutor General’s Office, none of which could be disclosed. The court ultimately sided with the ministry, affirming that Istanas had no right to access the restricted intelligence.

Public records show Istanas is equally owned by Kamineros grupė—a logistics and port-handling firm—and UK-registered Emea rei Ltd. Its beneficiaries include Tuma, his daughter Laura Tumaitė, and businessman Tomas Kriaučiūnas. The company has faced prior scrutiny: in 2020, prosecutors challenged its lease agreement with Lietuvos paštas over alleged corruption risks, while a 2018 national security review initially blocked Kamineros grupė’s expansion in Klaipėda Port before reversing course following Tuma’s acquittal on fraud-related charges.