Lithuania's Prime Minister Algirdas Brazauskas, left, shakes hands with LUKOIL President Vagit Alekperov.
Photo: Vladas Lyubartas
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Lithuania Gives Go-Ahead to Mazeikiu Nafta's Buyout from YUKOS
Lithuanian Seim passed a bill October 20, 2005 authorizing the government to raise 3 billion litas ($1.05 billion) to buy out the 53.7 percent in Mazeikiu nafta (MN) from YUKOS for further resale. Meanwhile, a scandal has nearly inflamed in Lithuania with the family of Prime Minister Algirdas Brazauskas suspected in close ties with LUKOIL, one of potential buyers for MN stocks.
MN includes a refinery of the same name, which is the sole in the Baltic countries, an oil terminal and Birzu naftotiekis pipe enterprise. Netherlands-incorporated Yukos International UK B.V. holds 53.7 percent, Lithuania – 40.66 percent.
Despite passing the bill, the better part of the parliament in Lithuania is apparently unclear with whom the Cabinet is going to agree on the MN sale, the more so that YUKOS stocks have been recently seized in Amsterdam. The situation has further exacerbated because of a mighty row almost triggered by conservatives against the prime minister of Lithuania. Traditionally opposed to LUKOIL’s arrival in the country, the conservatives call for setting up a parliamentary commission to probe into the purchase of elite Crowne Plaza Hotel. Conservatives question the circumstances under which PM’s wife Kristina Butrimiene-Brazauskiene got the 38 percent in Crowne Plaza previously owned by the wife of Ivan Paleichik, head of LUKOIL-Baltic. The timing of the attack is perfect and its actual purpose, the local analysts say, is to make Brazauskas walk out of the deal with Lithuania, YUKOS and a new owner of MN as parties involved.
Some time earlier, Brazauskas pointed to TNK-BP as the frontrunner for MN stocks. LUKOIL Vice President Leonid Fedun told Kommersant yesterday the company is in talks with Lithuanian authorities concerning the purchase of MN stocks. If the negotiations prove fruitless, LUKOIL may study the chances to build its own refinery in the region, Fedun specified.
www.kommersant.com
All the Article in Russian as of Oct. 21, 2005
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