The dispute concerns a 5 billion litas (EUR 1.45b) excess payment for Russian natural gas supplied to Lithuania at allegedly unfair prices during the last eight years.
Energy Minister Arvydas Sekmokas and Prime Minister Andrius Kubilius have confirmed that the authorities would initiate the dispute process.
„We see that the principle of fair price has apparently not been maintained,“ Sekmokas told the reporters.
In accordance with the public privatization terms and the 2004 deal on privatization of Lietuvos Dujos (Lithuanian Gas), Gazprom was obliged to supply Lithuania with natural gas at fair prices calculated using the gas price formula set forth in then-existing gas supply contracts signed between Gazprom and the Lithuanian gas imports and transportation company, the Energy Ministry said in a press release.
“Between 2004 and 2012, the price of gas supplied by Gazprom increased considerably due to the changes in the gas price formula, which had been made in violation of the terms and conditions of privatization agreement,” the ministry’s statement reads.
According to the statement, changes to the formulas were also approved by Gazprom-appointed members of Lietuvos Dujos’ board who might have acted for the benefit of Gazprom, and not of Lietuvos Dujos, when voting on respective contractual amendments.
“This demand of Lithuania is an entirely new thing. Earlier, Gazprom went to the Stockholm Arbitration Institute twice over Lithuania’s probe into the activities of Lietuvos Dujos and related interim safeguard measures. In July 2012, the arbitration institute turned down all claims by Gazprom for damages. At the same time, the institute stated that the issues pertaining to the gas price applied to Lithuania could not be tackled in the national court. Hence Lithuania is making these claims at Stockholm Arbitration today,” the statement reads.
Lawyers representing Lithuania’s government have said that the lawsuit will be filed in the nearest time. It might be heard for at least a year or even longer since the proceedings will involve questioning many witnesses and experts.
Lithuania is demanding 5 billion litas for more expensive gas, which was acquired by Lietuvos Dujos, the Lithuanian company controlled by Gazprom and Germany’s E.ON Ruhrgas, in line with long-term contracts.
