Lithuanian leather processors have started recording losses following a decision by Ukraine to restrict exports of raw hides to Lithuania from March 1 this year, according to Baltic Business News. Ukraine imposed the restriction after noticing that Lithuanian leather processors were importing considerably more hides than they needed. It was suspected that most of these hides, imported from Ukraine duty-free, were being re-exported by Lithuanian leather companies to regional markets. Lithuanian raw hides imports from Ukraine in 2002 increased by 500% compared with the previous year.