25 Jan 2012 18:03

Lithuanian govt, Gazprom agree to meet

VILNIUS. Jan 25 (Interfax) - Representatives of the Lithuanian government and Russian gas giant Gazprom have agreed to a meeting to discuss cooperation issues, prime ministerial advisor Virgis Valentinavicius said on Lithuanian radio.

The meeting is not associated with negotiations between the country and company over gas prices that are to be conducted under the aegis of the Energy Ministry and with the involvement of Lietuvos Dujos and Gazprom.

"I can confirm that a letter [containing an invitation to meet from Russia] has been received. The timing of the meeting is being coordinated now, and I think that there will be completely responsible policy will be conducted," Valentinavicius said.

Earlier, the paper Verslo zinios reported that there had been a January 17 letter from the general director at wholly owned Gazprom subsidiary Gazprom Export LLC, Alexander Medvedev, to Lithuanian Prime Minister Andrius Kubilius expressed the Russian company's desire to meet and discuss the current situation and prospects for relations in the field of gas. The paper said the letter's authenticity was "impossible to establish."

Lithuania intends to reorganize its gas business over a two-year period, breaking up Lietuvos dujos, in which Gazprom is a 37.06% shareholder, into separate outfits for supplying, distributing, and transporting gas. Trunk gas pipelines will remain state-operated (the government has a 17.7% stake in Lietuvos dujos), or it will have a controlling interest.

Lithuania has announced that there is an agreement with E.ON Ruhrgas, holder of 38.9% of Lietuvos dujos, but that Gazprom had not taken part in those negotiations. The Lithuanian government accuses Gazprom of setting unacceptably high gas prices. The various parties involved have initiated a number of court proceedings, including in Stockholm arbitration court. The European Commission has begun an inquiry into the particulars of prices for gas in the country.