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International Internet Magazine. Baltic States news & analytics Tuesday, 17.09.2019, 11:58

Orlen says wants to pay no more than other Lithuanian Railways customers

BC, Vilnius, 16.09.2016.Print version
Orlen Lietuva, the Lithuanian subsidiary of Poland's oil group Orlen, denies making additional demands to Lietuvos Gelezinkeliai (Lithuanian Railways, or LG) in their talks over rail freight rates, reports LETA/BNS.

"Our expectations in the talks are based on LG's official tariffs. We want to pay no more than other LG customers, especially given that we are the company's biggest freight shipment customer," said Orlen Lietuva spokesman Tomas Digaitis.


The spokesman said that Orlen Lietuva had not yet received a response from the state railway operator to the crude refinery's proposal.


"We are very surprised to see information in the media that our expectations are higher than before. We are also surprised by their (LG) comments on alleged additional contexts in our relations," he said.


LG Deputy CEO Albertas Simenas told that Orlen Lietuva had asked for tens of millions of euros worth of discounts on rail freight rates. In his words, the amount of discounts sought by the crude refinery is three to four times higher than it was in the spring, and the talks, therefore, are in a deadlock.


Simenas also said that that this could be the price for Poland's position not to hamper Lithuania's strategic energy projects, particularly the Baltic grids' synchronization with the Western European system.

Prime Minister Algirdas Butkevicius told that the government would not accept Orlen's demands if that might plunge the railway operator into losses.


Butkevicius has admitted earlier that a deal between LG and Orlen would make it simpler for Lithuania to speak with Poland about energy projects.


Orlen Lietuva and LG disagree over a freight transportation contract that they signed back in 2009 and that is effective until in 2024.


Relations between the companies went sour in 2014 following the government's decision to change how infrastructure fees are calculated. As a result of this decision, fees for dangerous goods, including oil products, increased.

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