Strong institutions, prudent fiscal policies, and surging FDI drive Lithuania’s economy. 7-minute read time Between 1240 and 1795, the Grand Duchy of Lithuania was one of Eastern Europe’s largest states, encompassing parts of modern-day Poland, Belarus, Ukraine, and Russia. At its 15th-century peak, after it united with Poland, it covered about 359,000 square miles before being partitioned by Russia, Prussia, and Austria in 1795.