The Lithuanian government announced on July 29 the cessation of negotiations with Russia’s LUKoil company on the sale of a 33 percent stock package in the country’s oil sector. On the same day, the government signed a protocol of intent with the U.S. company Williams International. The company will acquire the 33 percent interest this year for 300 million litas (including acquisition price, early investment, and ploughed-back investment out of profits) to be paid over a four-year period. The deal includes the three principal assets of Lithuania’s oil sector: the Mazeikiai refinery, the Naftotiekis internal pipeline and the Butinge maritime terminal, whose construction Williams undertakes to complete. The agreement is subject to approval by the Lithuanian parliament. It is worth noting that some deputies have criticized the terms of the agreement as potentially unprofitable. The country plans to sell additional stock packages in its oil sector to prospective investors. (BNS, July 27 through July 30)
LUZHKOV ENDORSES LATVIA’S REDS AHEAD OF ELECTIONS.