Energy, Energy Market, Legislation, Lithuania, Markets and Companies

International Internet Magazine. Baltic States news & analytics Saturday, 20.04.2024, 02:59

Vilnius plans to take Veolia to Stockholm arbitration court

BC, Vilnius, 24.04.2017.Print version
Vilnius' local authority and the municipal heating grid operator Vilniaus Silumos Tinklai (Vilnius Heating Grid, or VST) are planning to go to the Stockholm arbitration court after Veolia and Vilniaus Energija (Vilnius Energy), the French group's local subsidiary whose 15-year lease on the Lithuanian capital's heating system has recently ended, rejected the city's claim, worth around 200 million euros, for damages caused to the assets during the lease period, writes LETA/BNS.

We will vote at the (City) Council on Tuesday on a decision to turn to the Stockholm arbitration court as our claim was not recognized. It may take a few months after the Council's decision to prepare all the necessary documentation for filing an arbitration claim," Deputy Vilniaus Mayor Valdas Benkunskas told.


Vilniaus Energija's spokesman Nerijus Mikalajunas confirmed that the company had rejected the claim on Apr. 13.


"A negative answer was given, because such documents are absurd and groundless. We will be forced to participate in the (arbitration) process," he said.


Veolia and Vilniaus Energija back in January 2016 initiated a dispute against Lithuania at the International Center for Settlement of Investment Disputes (ICSID) in Washington. The companies claim around 100 mln euros in compensation from Lithuania for its allegedly unfair treatment and expropriation of the group's Lithuanian assets.


Vilniaus Energija handed the Lithuanian capital's heating grid over to VST after its 15-year lease on the assets expired on Mar. 30.





← Back↑ Up

Русский
Search site