Gazprom demanding 191 million dollars from Lithuania

Kauno elektrinė
Kauno elektrinė
  © INNA

Russian gas giant Gazprom is accusing Lithuania of breaking its agreement on gas prices in its Kaunas energy plant and is demanding a refund of 191 million US dollars, the energy ministry confirmed to Alfa English on Friday.

The letter, addressed to the energy ministry and the prime minister of Lithuania, says that the base price of energy produced in Kaunas energy plant was fixed for 15 years by the agreement with Lithuania, which was signed when Gazprom purchased the plant in 2003.

Gazprom is accusing Lithuania of breaking the agreement in October 2008, when the State Prices and Energy Control Commission set a lower energy price than the agreement allows.

The price, fixed by the commission, is 14.76 Lithuanian cents, while according to Gazprom, it should be almost twice as high – 22.57 cents.

Gazprom claims their losses in one and a half years reached 209 million Litas due to the decrease of the energy price.

The Russian company stated that the issue might be solved in international arbitration if Lithuania does not change the law back.

The energy ministry said that the short response is currently prepared and refused to reveal any of its details.

The prime minister's office also confirmed that the letter was received.

Gazprom purchased the plant for 116.5 million Litas from the state-owned Kauno energija and committed to invest another 400 million Litas to the plant.