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International Internet Magazine. Baltic States news & analytics Saturday, 27.04.2024, 00:31

Russian gas embargo would have cost to Lithuania as much as investments in energy security

BC, Vilnius, 09.12.2014.Print version
If due to a potential Russian gas embargo its alternatives in Lithuania cost by 50 or 100% mores, then in the first year of such embargo Lithuanian business would have lost LTL 1.6 billion or LTL 1.9 billion (EUR 467 million or EUR 550 million), which amounts to the country's investment in the pipeline connections with Poland and the LNG terminal, reports LETA/ELTA.

Such figures came from a study on Vulnerability of Lithuanian Businesses to Changes in Prices of Energy Resources 2014, conducted by the international audit, tax and consultations company KPMG.

 

"We found that in the case of a potential Russian gas embargo losses of Lithuanian business would be very similar to the amounts which the state invests in gas supply diversification projects. It means that we basically invest the same money in energy security as we would otherwise potentially lose in a year due to political circumstances. Taking into account a potential loss due to a possible embargo of several years, it becomes obvious that we have avoided a huge financial risk," KPMG partner Rokas Kasperavicius said.

 

According to him, such comparison allows us looking at the importance of investment projects from a different angle and proves that billions allocated for gas supply diversification projects are really worth it.





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