Lithuania Urges Lietuvos Dujos to Join Arbitration Against Gazprom

Lietuvos Dujos could join Lithuania in arbitration proceedings against Gazprom, as the Lithuanian Energy Ministry urged the gas utility to do so. The ministry holds 18% of Dujos, Gazprom 37% and E.ON SE 39%.

The Baltic country is initiating new arbitration proceedings to obtain lower gas prices. It is suing Gazprom for $2 billion in claimed overcharges.

“Proceedings shall be suspended in case of reaching a favourable commercial agreement,” the company said in a stock exchange release on Thursday.

Lietuvos Dujos said that the decision to join arbitration proceedings would be taken by its shareholders at the extraordinary meeting scheduled for 30 January 2014.

According to Eurostat, Lithuania’s dependency on Russian Gazprom gas is at 100%, while its electric power import amounts to the EU record-high 70%. 

The shutdown of the Ignalina Nuclear Power Plant in 2009, a prerequisite for the EU accession in 2004, has significantly exacerbated power supply. In fact, Lithuania has gone from power exporter to the biggest importer in entire Europe.

Lithuania also initiated the European Union antitrust probe. The European Commission expects to conclude its investigation on Gazprom's alleged anti-competitive market practices by spring 2014.