Lithuania claims Gazprom breaching contract

3rd March 2011, Comments 0 comments

Russian gas giant Gazprom has breached a contract with Lithuania and is putting political pressure on the Baltic nation's government, Lithuania's energy minister said on Thursday.

"Lithuania has gathered proof that Gazprom is supplying gas to us at an unfair price. This is a breach of contract," Energy Minister Arvydas Sekmokas told reporters.

In a statement, his ministry said: "Gazprom is discriminating against Lithuania's natural gas consumers and putting political and economic pressure on the government."

Sekmokas warned that unless Gazprom negotiated new prices within 60 days Lithuania would seek international arbitration.

Gazprom, Lithuania's sole gas supplier, signed a contract with the Baltic state in 2004 that gave it a one-third stake in Lithuania's gas distributor Lietuvos Dujos.

Gazprom and the Lithuanian government have for months been locked in a war of words over the Baltic state's gas market reforms, which fall under European Union rules.

© 2011 AFP

0 Comments To This Article