Translated material
The European Commission is interfering with “Friendship”
Neeli Cruz demands that Russia provide information on the reasons for the termination of pipeline oil supplies to Lithuania
The European Commission is again trying to force Russia to conduct business according to the ideas of the Old World. Last week in Estonia, as is known, Competition Commissioner Neeli Kruse threatened to take away from Gazprom its share in the Nord Stream project , and yesterday she demanded from the Russian Ministry of Industry and Energy a detailed report on the reasons for the refusal to resume supplies via the Druzhba oil pipeline to Lithuania to the Mazeikiu Nafta plant, interrupted a year ago due to an accident. The initiator of the process was Vilnius, which made a corresponding request to the participants of the next plenary meeting of the European Parliament in Strasbourg. “The European Commission is in constant contact with the Russian Energy Minister and demands that the Russian authorities provide Lithuania with comprehensive information about the Druzhba oil pipeline and find a solution acceptable to all,” Ms. Cruz responded to a request from Lithuanian parliamentarians yesterday. However, it is unlikely that Vilnius’ demands will have any effect. About two weeks ago, speaking at the St. Petersburg Economic Forum, the head of the Ministry of Industry and Energy, Viktor Khristenko, spoke very negatively and sharply about the possibility of resuming supplies to Lithuania, arguing that it was economically inexpedient.The Lithuanian oil complex Mazeikiu Nafta, which includes a refinery with a capacity of 12 million tons of oil per year and the Butinge oil terminal, was involved in a major scandal last year related to the bankruptcy of Yukos. Until December 2006, a controlling stake in the complex (53.7% of shares) belonged to the Dutch subsidiary of Yukos Yukos International, another 40.66% belonged to the Lithuanian government, the rest belonged to several minority shareholders. But after the Russian authorities began the bankruptcy process of YUKOS last spring, the disgraced management of this company decided to quickly sell the Lithuanian asset. Russian companies showed the greatest interest, in particular LUKOIL, TNK-BP and Surgutneftegaz, which promised not only a good price for this asset, but also uninterrupted oil supplies. Rosneft, which was then experiencing a lack of refining capacity, was also considered a contender. However, the Russian partners did not suit Lithuania for political reasons. As a result, in mid-June the Polish oil refining company PKN Orlen was declared the winner of the tender, offering $1.49 billion for the Yukos stake. But the Poles were unable to immediately conclude a sale and purchase deal. Immediately after the announcement of the tender results, an unexpected accident occurred at the Druzhba oil pipeline in the Bryansk region; as a result, supplies to Lithuania were stopped due to the unsatisfactory condition of the pipe. The market stubbornly associated the troubles with the loss of Russian companies in the fight for the plant.
The management of the Mazeikiai Refinery was forced to organize tanker deliveries of oil, for which the Butinge terminal, previously oriented towards export, was connected. In August, Yukos went bankrupt, and long legal proceedings began over the legality of this transaction. In October, one of the refinery's purification units burned down. As a result, Mazeikiu Nafta operated at a large loss last year.
After some deliberation, the Poles finally decided on a deal, and in mid-December two purchase and sale agreements were concluded for a 53.7% stake in Mazeikiu Nafta owned by YUKOS, and a package of 30.66% shares owned by the Lithuanian government (the remaining 10% Lithuania retained it). However, supplies of raw materials have not resumed. Russia does not hide the fact that it is not going to pump oil to Lithuania in the foreseeable future, explaining this by the poor technical condition of the pipeline, built back in the 60s of the last century.
In the spring of this year, Rostechnadzor published its conclusion on the state of that part of the Friendship that goes to the Mazeikiai Oil Refinery. According to the conclusions of the expert group, more than 7 thousand various defects were identified on the oil pipeline, requiring almost complete replacement of the pipe.
This caused a negative reaction from Lithuania, which “complained” to the European Union. According to Vremya Novostei, about a month ago the Ministry of Industry and Energy already received a request from the European Commission Commissioner for Energy Andris Piebalgs, to which the Russian side responded. It is not yet known what was discussed, but the answer, apparently, did not satisfy the Lithuanian side.
In June, during the St. Petersburg forum, Mr. Khristenko made it clear that no one in Russia was going to repair or replace the pipe. “The question is: whether to relay the pipe, or to function as it is now, ensuring the operation of the Lithuanian oil refining industry with supplies of Russian oil from the port of Primorsk,” he said. - The maximum that can happen in this case is a loss of 1-2 dollars (meaning from every ton of oil. - Ed. ) in the business of some company, the name of which is unknown to me. This has nothing to do with energy security! It’s not the most rewarding thing for officials around the world to help some companies whose names we don’t know to return this dollar.”
Apparently, the Russian government will present the same position to the European Commission this time too. True, then Lithuania could theoretically resort to a more effective means, blocking negotiations between the European Union and the Russian Federation on concluding a new partnership and cooperation agreement. However, the escalation of the conflict is not in the interests of Vilnius - supplies of Russian oil may also cease by sea.