Lithuanian Government Tries to Avoid Ceding Control of Important Oil Sector Decisions to YUKOS

Lithuanian President Valdas Adamkus yesterday announced that Lithuania must formulate a clear strategy for talks with the Russian oil company YUKOS. According to the President's press service, he made this announcement during a meeting with Prime Minister Algirdas Brazauskas, Finance Minister Dalia Grybauskaite and Economic Minister Petras Cesna.

On Tuesday YUKOS officially informed the Lithuanian government of its intention to acquire 26.85% of shares in Mazeikiu nafta, Lithuania's largest oil refining and transportation concern. The shares currently belong to the American company Williams. YUKOS already owns an identical amount of shares in Mazeikiu nafta, and if the purchase of the shares from Williams goes ahead, it will gain control of the Lithuanian company.

In the meeting with ministers, the Lithuanian President discussed the question of the concern's management after the possible transfer of a controlling share packet to YUKOS. Adamkus suggested trying to find various alternatives relating to the forthcoming change in Mazeikiu nafta's share distribution. In his opinion, the government must do everything possible to maintain control over the decision-making process, which is of strategic importance for the oil sector in Lithuania.

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&to=http://www.yukos.com/main.asp' target=_blank>YUKOS

&to=http://www.nafta.lt/' target=_blank>NAFTA

&to=http://www.williams.com/index.jsp' target=_blank>WILLIAMS