In 2012, Paluckas faced a conviction related to mishandling a contract process for pest control in Vilnius, where he was the director of municipal administration, as reported by the Associated Press. It emerged that he failed to settle a significant portion of a fine nearing $20,000.

More recently, a controversy surfaced regarding a €200,000 ($228,777) subsidized loan obtained by Garnis, a company he co-founded, during his tenure as prime minister. This loan is currently under scrutiny by Lithuania’s Chief Official Ethics Commission, according to LRT. 

Additionally, Garnis was implicated in another scandal involving Prime Minister Paluckas, concerning Dankora, a company owned by his sister-in-law, which received EU funds and utilized them to procure goods from Garnis. Due to public pressure, Dankora returned the funds, as reported by LRT.

Lithuanian new Prime Minister Gintautas Paluckas attends a session of the Seimas of the Republic of Lithuania, in Vilnius on December 12, 2024. (PETRAS MALUKAS/AFP via Getty Images)

Paluckas denies any wrongdoing and claims the criticism is part of a “coordinated attack” by his political opponents, according to the Associated Press. 

The prime minister’s resignation puts Lithuania in a precarious position, as it comes just before Russia and Belarus hold joint military exercises. Paluckas’ whole cabinet is expected to resign as well, possibly leaving the Baltic country without a functioning government just weeks ahead of the Russian-Belarusian exercises, according to the Associated Press. However, this may not impact Lithuania’s foreign policy, as Nausėda, who represents the country on a global scale, has been an ardent supporter of Ukraine during its years-long war with Russia.