Hit the law on Dujotekana

Lithuanian parliamentarians violated agreements with Gazprom

The Lithuanian Seimas yesterday adopted amendments to the gas law, giving the state the right to regulate prices for this type of fuel. The changes providing for the possibility of limiting prices for so-called “free” consumers (they receive gas from Gazprom directly and through the private trader Dujotekana) were approved by parliamentarians contrary to the opinion of the government, which opposed violation of agreements with the only gas supplier to the country - Gazprom " And the adopted amendments violate some points of the two-year-old agreement between the Lithuanian government and the Russian concern on the privatization of a 34% stake in the gas distribution company Lietuvos dujos. Gazprom refused to comment on the situation, citing the fact that in order for the new norms to enter into force, they must be approved by the President of Lithuania. If this bill finally becomes law, Gazprom will have virtually no leverage to retaliate other than tedious litigation. The fact is that starting next year, gas will be supplied to Lithuania at European prices without any discounts. This means that it will not be possible to “revenge” by additional price increases. Currently, Lithuania receives blue fuel at a price of $202 per thousand cubic meters, which is 25-30% lower than Western European countries.

At the same time, it should be noted that the introduction of gas price regulation for “free” consumers will not directly affect Gazprom. In total, Gazprom exported 2.7 billion cubic meters of gas to Lithuania last year. About 1 billion cubic meters were received under direct contracts by the largest consumers - the gas chemical complex Achema (700 million cubic meters) and the Kaunas Thermal Power Plant, controlled by Gazprom. Approximately 1.2 billion cubic meters were distributed through LD, while Dujotekana accounted for about 500 million cubic meters. The fact is that it does not apply to supplies through Lietuvos dujos (another 34% belongs to the German concern E.ON Ruhrgas, and the remaining 32% to the Lithuanian government), which distributes about 50% of gas in the republic. But the Lithuanian government will still not be able to regulate the import price under direct contracts. That is, Gazprom’s revenue will not suffer and will depend only on the calculation using the price formula.

The main blow - and this was not hidden in the Sejm - was planned to be dealt to the private trader Dujotekana, which belongs to several individuals. Including the president of the company, the honorary consul of Ukraine in Klaipeda Rimandas Stonys and the Russian citizen Petr Voeiko, a native of the KGB structures. Dujotekana and its owners are regularly accused of collaborating with Russian intelligence services, so attempts to deprive it of part of its income are a logical tool of political struggle in the republic.

Two years ago, Alexander Ryazanov, who was then deputy chairman of the board of Gazprom, promised that the Russian concern would buy out a controlling stake in the trader. However, this never happened. Moreover, Mr. Ryazanov, who built relationships with Mr. Stonis, has not worked for Gazprom since the end of last year. Therefore, it is unclear whether Gazprom will be just as desperate to protect Dujotekana (after all, the requirement not to introduce regulation for “free consumers” was included in the privatization agreement solely in the interests of the trader) from unfriendly gestures of Lithuanian parliamentarians. Nevertheless, now is a good time to buy out a controlling stake in Dujotekana from private shareholders and strengthen its position in the retail market of one of the EU countries.

Alexey GRIVACHS