Lietuvos dujos shareholders to vote on arbitration suit against Gazprom on Jan 30
VILNIUS. Jan 9 (Interfax) - Shareholders in Lithuanian gas concern Lietuvos dujos will consider a motion from the Lithuanian Energy Ministry to launch arbitration procedures against Gazprom at a meeting on January 30, the company reported via the Vilnius Stock Exchange information system.
The Energy Ministry wants to secure a lower price for Russian gas under the revised gas supply agreement of December 16, 1999.
"The company's general director will also be authorized to negotiate better gas delivery terms with Gazprom. The arbitration procedure will be halted if a commercial agreement favorable to the company is reached with Gazprom and approved by company management," Lietuvos dujos said.
Despite a decline of nearly 10% in the price of Russian gas that took effect on January 1, Lithuania still pays more for gas than countries in neighboring markets, an Energy Ministry official told the BNS.
"Despite all our efforts, the price of gas remains significantly higher compared with our neighbors and with market prices. We overpay for gas every day. That harms our consumers, our economy and Lietuvos dujos itself, because those prices drive away customers, reduce gas consumption," advisor to the energy minister Daiva Rimasauskaite told the BNS.
Although the ministry will await the opinion of shareholders, it hasn't ruled out dialog. "The door is open. This arbitration procedure can be halted once the price is lowered to a fair level," Rimasauskaite said.
Lietuvos dujos spokesman Jolita Butkiene told the BNS the company had no comment concerning the Energy Ministry initiatives.
Russian Ambassador to Lithuania Alexander Udaltsov promised to accelerate the pact of meetings between Lithuanian government officials and Gazprom.
"I don't want to usurp Gazprom's rights to negotiations. This is a very specific question. We have already met with Lithuania's energy minister, spoke about this. I took it upon myself to try to speed up a top-level meeting to examine these issues," Udaltsov told journalists on Thursday following a meeting with Lithuanian Prime Minister Algirdas Butkevicius.
Under the terms of Lietuvos dujos 2004 privatization and its share purchase agreement, Gazprom is obligated to deliver gas to Lithuania at a fair price using a formula for gas contained in the current gas delivery contract between Lietuvos dujos and the Russian gas giant.
Lithuania filed with Stockholm arbitration in October 2012, claiming 5 billion litai in damages. Meanwhile, the UN Commission on International Trade Law (UNCITRAL) is examining a Gazprom lawsuit on Lithuania's possible non-compliance with its commitments. The European Commission is wrapping up its antimonopoly investigation into Gazprom, which may result in a fine.
Butkevicius believes an agreement with Gazprom on a 20%-25% reduction in the price of gas is realistic.
Gazprom owns 37.06% of Lietuvos dujos, E.ON Ruhrgas International has 38.9% and the Lithuanian Energy Ministry has 17.7%.
The litas is pegged to the euro at 3.4528/EUR1.
