2012-12-07 12:21

Naftos Grupė owner asks court to halt Kaunas CHP plant sale

Artūras Urbutis, the owner of Naftos Grupė (Oil Group), an oil product forwarding company notorious in Lithuania for its multi-million litas schemes in the oil business, has asked a court to invalidate decisions by Kauno Energija's (Kaunas Energy) shareholders giving the green light for Russia's Gazprom to sell Kauno Termofikacijos Elektrinė (Kaunas Combined Heat and Power Plant, or KTE) to Lithuanian businessman Rimandas Stonys.
Kauno termofikacinė elektrinė
Kauno termofikacinė elektrinė / „Lietuvos žinių“ nuotr.

Urbutis, a majority shareholder of Kauno Energija, filed a suit against the municipal heating company and the city's local government in September, asking to invalidate the decisions adopted by a shareholders' meeting on 17 August to allow the Russian gas giant to sell its majority stake in KTE, Kauno Energija said in its performance report for the nine months through September.

The Kaunas City District Court is to hear Urbutis' suit on 16 January.

Vytautas Mačionis, the director of the Administration Department at Kauno Energija, told BNS that the suit would have no effect on the closing of the deal between Gazprom and Stonys.

"That will have no effect on this process," he told BNS, adding that the court had not issued an order to suspend the deal.

The local government of Kaunas, which controls Kauno Energija, also asked the court to halt the sale of Gazprom's stake in KTE to Clement Power Venture, a US-registered company owned by Stonys, in early September but later withdrew its request.

The deal is expected to be closed by the start of next year.

Last spring, Gazprom decided to sell KTE following several years of disagreement with Kaunas' authorities over the Russian company's failure to meet its investment commitments and due to disapproval by both the central and local authorities of its project to build a new power plant worth around one billion litas (EUR 290m).

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