Gazprom Goes to Arbitration Against Lithuania

Gazprom has today announced that is seeking international arbritration against the Lithuanian government in a bid to protect its investments in the country.

The announcement comes days after a meeting between Deputy Chairman of Gazprom's Management Committee Alexander Medvedev, Lithuanian Prime Minister Andrius Kubilius and European Commission Director General for Energy Philip Lowe.

During the meeting, Gazprom says it discussed the issues affecting Lietuvos Dujos in relation to the Third Energy Package, cooperation in the gas market and other concerns.

Gazprom says it is taking the arbitration under the United Nations Commission on International Trade Law (UNCITRAL) due to the legislation enacted by the Lithuanian government for the gas industry.

"Gazprom hopes that the accords reached on February 27, 2012 will be implemented before the Lietuvos Dujos Shareholders Meeting in order to avoid legal proceedings," Alexander Medvedev said in a statement today.

The Lithuanian legislation seeks to unbundle Lithuania's gas market, separating the country's supply, distribution and transport arms, a move that directly affects Gazprom, which holds a 37.1 per cent stake in main gas supplier Lietuvos Dujos.