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Feb. 24, 2007
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Lithuania Threatens to Block EU-Russia Talks Because of Oil
Lithuania might join Poland and block the talks on the new Russia-EU cooperation agreement, unless the EU takes measures to resume the supplies of Russian oil to Lithuania.
Lithuania said it might block Russia-EU talks if the EU does not put pressure on Russia to open the section of Druzhba pipeline.

The EU summit is scheduled for March 8-9, 2007.

Russian pipeline monopoly Transneft stopped pumping oil through a section of Druzhba pipeline in Lithuania’s direction to Mazeikiu Nafta, the only oil refinery in the Baltic states, after the accident of July 2006. Lithuania accuses Moscow of using the situation to pull down Mazeikiu’s value in attempt to dissuade Poland’s PKN Orlen from buying the oil refinery. PKN Orlen had won the tender for Mazeikiu Nafta refinery, leaving Russian companies behind.

Federal Technology Supervision Service of Russia is now examining the damaged sector of the pipeline, so as to estimate whether it can be repaired or whether a new pipe should be laid. Transneft had said that the export of Russian oil to Lithuania will be resumed not earlier than March 2007, when the pipeline’s examination is over. It might take one or two years to reconstruct the pipe.

Poland’s authorities used their right of veto to block Russia-EU talks on cooperation in politics, trade, energy, and human rights. Warsaw thus tried to force Russia to lift the ban on Polish animal products. Russian authorities had imposed the ban due to health control reasons.

Active talks between the EU and Poland on lifting the veto on Moscow-EU talks failed. Consequently, the negotiations for the new framework agreement between Russia and the EU have not began yet.

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