Baltic States – CIS, Energy, Investments, Lithuania, Transport

The prospect of a Russian role in Polish-owned Orlen Lietuva's refinery has raised opposition in Lithuania, which has had rocky relations with Moscow since breaking free from the crumbling Soviet Union in 1990, writes LETA referring to AFP.

Orlen Lietuva's Polish owner PKN Orlen has said it is seeking a "strategic partner" and has not ruled out talks with Russian companies.

Lithuanian Prime Minister Andrius Kubilius recently expressed concern, saying it was a "strategic" issue for the country.

Lithuania relies heavily on its giant neighbour and former master for energy, and buying into Orlen Lietuva could give Moscow even more clout.

"Any company can import to Lithuania all the products the refinery produces," said Grybauskaite. "The main importance is a social one in this town, where about 2,500 people are employed" by Orlen Lietuva, she added. The refinery is located in Mazeikiai in northwest Lithuania, a community of 46,000.

Polish media have reported that PKN Orlen could sell up to 25% of Orlen Lietuva and that state-run Russian fuels giant Rosneft would be the likely buyer. PKN Orlen has refused to identify likely suitors.

Last month, Grybauskaite met with Russian Prime Minister Vladimir Putin amid a Baltic Sea summit in Finland. Her spokesman later said Putin had told her Russia was in talks over Orlen Lietuva.

Grybauskaite told AFP that Lithuania would still be on watch to ensure that PKN Orlen and any would-be investor respected the country's laws as well as European Union competition rules.

"The clarity can be given only by the Polish and Russian side," she said, when asked if it was time to halt the rumour-mill.

The refinery has been a thorn in Lithuanian-Russian relations in the past. In July 2006, after PKN Orlen bought a stake in the Lithuanian refiner having beaten a Russian bidder, Russia's fuels transport giant Transneft turned off the tap on its Druzhba oil pipeline serving Lithuania, citing repairs.