Poles act to counter Russia power plays

International Herald Tribune ^ | TUESDAY, MAY 30, 2006 | Judy Dempsey

[lizol]

Poles act to counter Russia power plays

Judy Dempsey International Herald Tribune

TUESDAY, MAY 30, 2006

BERLIN Despite immense resistance from Russia, the largest energy group in Poland has signed a deal to buy a majority stake in a Lithuanian oil refinery from a subsidiary of Yukos, the energy giant that was bankrupted by Kremlin tax claims.

Orlen, the biggest oil refining company in Poland, will pay $1.49 billion to Yukos International UK, based in the Netherlands, for its 53.7 percent stake in the Mazeikiu Nafta refinery. The Lithuanian government will also sell its 30.7 percent stake in the refiner to Orlen for $851.8 million, once the Yukos sale is approved by the European Commission and by the Lithuanian Parliament.

The sale of the refinery stake to Orlen is designed to give Poland and Lithuania more secure energy supplies and the opportunity to diversify their energy sources amid growing concern that Vladimir Putin, the Russian president, is using his country's vast oil and natural gas reserves as a political weapon against neighboring states.

"This is a very important deal for Poland and Lithuania because it means close cooperation between two countries that are very concerned about the future of energy security," said Zygimantas Pavilionis, director of the European Department at the Lithuanian Foreign Ministry. "This could be the first step in solving the problem of security of energy supplies in the region."

A U.S. bankruptcy court on Sunday lifted an order blocking Yukos International from carrying out the sale, which will help raise money to pay creditors of its Russian parent company. A receiver appointed by a Russian bankruptcy court to run Yukos had objected to the sale, and in April the Lithuanian prime minister said the Russian Justice Ministry had sent him a letter asking him to block the

[lizol]

Eastern European ping list

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FRmail me to be added or removed from this Eastern European ping list

[Bluegrass Conservative]

Poles act to counter Russia power plays

Watch out, the Russians are pretty good at power plays!

[lizol]

A Transneft executive on Monday called into question whether oil would continue to flow to the Lithuanian refiner.

Referring to Orlen, Sergei Grigoryev, a Transneft vice president, told Reuters, "We really don't know who they are."

In fact, Orlen is Central Europe's largest refiner of crude oil and has an extensive retail network in Poland, Germany and the Czech Republic. With more than 20,000 employees, it had revenue of $8.36 billion in 2004 and net profit of $985 million.

The chief executive of Orlen, Igor Chalupec, played down concerns about fuel deliveries.

"We are a serious buyer of Russian crude, and I think Russian producers are very happy with these revenues," he told Reuters. With the Mazeikiu Nafta deal, Orlen would become the largest buyer of Russian crude oil.

Of course - if anybody asked - it's all only about business, no politics involved. (sarcasm)

[strategofr]

"BERLIN Despite immense resistance from Russia, the largest energy group in Poland has signed a deal to buy a majority stake in a Lithuanian oil refinery from a subsidiary of Yukos, the energy giant that was bankrupted by Kremlin tax claims."

GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO POLAND!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!GO!!!

[GAB-1955]

Then why did the Czechs beat them in the Olympic medal round?

[Bluegrass Conservative]

Then why did the Czechs beat them in the Olympic medal round?

Czechs . . . what are you going to do with them? : )

[GAB-1955]

Bounce the Czechs.
Vault the Poles.

And I'll be darned if I can think of a pun for "Azerbaijani."

[anonymoussierra]

Dzieki.

[Lukasz]

If Putin would not destroy Yukos then we would never buy this refinery. I should add that this is the most modern refinery in former USSR although still must be modernized.

[b2stealth]