Gazprom and the Lithuanian State property foundation approved sales of 34% of Lietuvos duos shares
Today, in the city of Vilnius (Lithuania), General Director of the Lithuanian State Property Foundation, Povilas Milashauskas, and Gazprom’s Management Committee Deputy Chairman, Alexander Ryazanov, approved the agreement on purchase of 34% of Lietuvos duyos’ shares by Gazprom.
In summer 2002, the Government of the Republic of Lithuania ratified the Program of privatization of Lietuvos duyos, a Lithuanian gas company.
Under the Program, Lietuvos duyos is to be privatized in 2 phases. At the first phase, the consortium of the German companies Ruhrgas AG and E.ON Energie, Lithuania’s strategic foreign investors, acquired 34% of Lietovus duyos’ shares. At the second phase, the Lithuanian Government put up for an auction another 34% of the company’s shares. The winner of the contest, Gazprom, the major gas supplier to Lithuania, is purchasing the auctioned share package.
On September 24, 2002, Gazprom submitted its initial proposal on purchasing 34% of Lietuvos duyos’ shares to the Lithuanian State Property Foundation.
On April 10, 2003, Gazprom forwarded to the Foundation the final proposal approved by the Company’s Management Committee.
Taking into account Lietuvos duyos’s financial results for the first quarter of 2003 and upon the request of the Lithuanian party, Gazprom has improved the terms of the share purchase agreement.
The Lithuanian gas transmission network, being an integral part of the USSR United Gas Transmission System, is still closely connected to the Russian gas transmission system. Gas is piped through Lithuania to the Kaliningrad province (in 2002, gas deliveries totaled 563,5 million cubic meters).
In 2003, Gazprom plans to supply some 3 bcm of gas to Lithuanian consumers, with 450 million cubic meters to be supplied through Lietuvos duyos.
Information Directorate, OAO Gazprom