Lithuanian parliament approves government loan to buy Yukos' stake in oil company

RIA Novosti ^ | 20/ 10/ 2005 | Vladimir Vodo

[jb6]

VILNIUS, October 20 (RIA Novosti, Vladimir Vodo) - The Lithuanian parliament passed a bill Thursday giving the government the authority to obtain a $1 billion loan to purchase beleaguered Russian oil giant Yukos' 53.7% stake in oil company Mazeikiu nafta in order to resell it, possibly to the Russian-British venture TNK-BP.

Lithuanian Premier Algirdas Brazauskas said the government would now be able to hold talks on the resale of the stake with TNK-BP and other bidders.

"There are five or six companies who may participate in the talks. We have stated our position that talks will first be held with TNK-BP. If these are unsuccessful, we will hold talks with other potential buyers," Brazauskas said.

The Lithuanian government will also sell about 30% of the 40.66% stake in the company that it already owns.

Lithuanian media reported that in addition to TNK-BP, other companies showing an interest in buying the stake include Russian companies LUKoil and Gazprombank, Kazakhstan's KazMunayGaz, U.S. company ConocoPhillips, Poland's Orlen, the Swiss venture Vitol and Austria's Baltic Holding.

Mazeikiu nafta owns the only oil refinery in the Baltic states, an oil export terminal, and the Birzai pipeline.

[jb6]

You mean that if unlike Latvia and Estonia, Lithuania has good relations with Russia they get a chance to buy up Russian assets and do business with them? Wow, who would have thunk it? Don't act like they're your enemy and you get business opportunities....hmmm what a wild concept.

[Camel Joe]

I don't think the Russian government could really care how Lithunia treats them as long as they can get rid of some Yukos’ dead weight. The socialist state run company has no capital to invest in an oil company in these times. Another lesson in free market economics… socialism simply doesn’t work for anyone or anything except for those who would rule over us. I am sure that the Russians are the ones who approached the Lithuanian government about the sale of Yukos’ interests in oil company Mazeikiu nafta.

[Castro]

If I remember correctly, Estonia and Lithuania have been the most vocal in their inate distrust and dislike of all things Russian. The Latvians were the only representatives at the commemorative ceremony this summer. Saying that Lithuania has good relations with Russia is just plain wrong.

[jb6]

That's Estonia and Latvia. Lithuania maintains relatively good relations. True the Latvians went but they went to make arses of themselves. The Latvians and Estonians also maintain government supported Nazi parades for the SS veterans (yearly events).

[A. Pole]

Saying that Lithuania has good relations with Russia is just plain wrong.

Lithuanians got a great gift from Soviet Russia - their capital with the most developed province. At Polish expense.