Legislation, Lithuania, Transport

Lietuvos Gelezinkeliai received the request from the Mazeikiai-based company on the application of temporal security measures even before the day of the appeal submission and presented a response on this address to the court. In this response the company specified that the oil processors" request is unsound and violates the rights and legal interests of Lietuvos Gelezinkeliai.

Lietuvos Gelezinkeliai appealed to the arbitrage against Mazeikiu Nafta in the light of a debt of 40 million litas (11.7 million euros) which accumulated in June-September for tariffs applied by oil producers that are lower than those foreseen in the long-term agreement. Moreover, the company unilaterally terminated the aforementioned agreement on tariffs for transportation of oil products signed in 1999. According to Lietuvos Gelezinkeliai, as of June, Mazeikiu Nafta started paying a price lower than that set by the agreement and therefore a huge debt accumulated.

Mazeikiu Nafta spokesman Jacek Jan Komar told ELTA that the request regarding temporal security measures was made in the light of the terminated agreement.

In line with the agreement dated 1999, the U.S. company Williams, previous shareholder of Mazeikiu Nafta, ensured privileged tariffs. Since this agreement has been cancelled, Lietuvos Gelezinkeliai claimed that it would apply tariffs for transportation in line with general order from September 1 until the signing of a new agreement. This is 40% more compared to the previous agreement, however, after negotiations companies managed to agree on cheaper transportation – the railways agreed to temporally apply a discount of 30% until the signing of the new agreement.

Lietuvos Gelezinkeliai CEO Stasys Dailydka told ELTA that no reply has been received from Mazeikiu Nafta yet, however, hopefully such an agreement will be signed by October.