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Lithuania Decides the Future of Mazeikiu Nafta
The Lithuanian government today passed a decision to enter into negotiations with TNK-BP oil company on the sale of the Mazeikiu nafta oil complex. Prime Minister Algirdas Brazauskas had indicated that that decision was upcoming in a radio address last night, saying that the company met the majority of the requirements for the buyer of YUKOS' share in the Lithuanian company. It will not be a quick transaction, however, since the stock in it belonging to YUKOS (53.7 percent) are frozen by order of a Dutch court at the request of Yuganskneftegaz, which is suing its former parent company. TNK-BP executive director German Khan visited Vilnius last week and met with Lithuanian leaders. LUKOIL head Vagit Alekperov was there the week before. The Lithuanian press is reporting that YUKOS' share in the company will cost about $1 billion, and 20-30 percent of the company's stock from the state share about $350 million. The complex is made up of an oil refinery in the city of Mazeikiai, an oil terminal in Butinge and the Birzu naftotiekis pipeline operator. The Dutch Yukos International B.V. owns 53.7 percent of the company and the Lithuanian state owns 40.66 percent. The market price of the YUKOS share is $1.5-2 billion. The Lithuanian government intends to buy YUKOS' share in the company from it for resale along with a portion of its share. The Seimas is to vote on a proposal to allocate $1.05 billion for that purpose tomorrow.
YUKOS transferred its shares in Mazeikiu nafta to the Amicus trust company, along with its 49 percent of the Slovakian pipeline operator Transpetrol, for protection. However, ten banks that are trying to obtain $480 million in payment on a loan granted by them to YUKOS in 2003 have argued that that move shields the assets not only from Russian authorities and law enforcement agencies, but from the banks as well. Those banks, headed by Societe Generale, requested that an Amsterdam court confirm the legality of that transfer. The court is to rule by October 29. If the court finds in favor of the banks, it will be easier for Yuganskneftegaz to take over control of Mazeikiu nafta and the Slovakian company, by appealing to a Dutch court to enforce the ruling of the Moscow Arbitration Court on the indebtedness of YUKOS to Yuganskneftegaz for unpaid-for oil.
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All the Article in Russian as of Oct. 12, 2005
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