OSLO — Lithuanian gas utility? Lietuvos? Dujos said it would spin off its gas transportation arm by the end of July and EU rules would force Gazprom and E.ON Ruhrgas to sell their stakes in the new firm.
The new gas grid operator, called? Amber Grid, will take 1.6 billion litas ($602.4 million) or 57.4 percent of the utility's assets,? Lietuvos? Dujos said Thursday.
Lithuania, which is implementing? European Union? market liberalization rules, will require the spinoff by law and forbid companies involved in gas production and supply from controlling gas transportation as well.
Joachim Hockertz, deputy chief executive of? Lietuvos? Dujos, said in an interview that both? Russia's Gazprom and? Germany's E.ON would have to sell their stakes as a result.
"They must sell. Otherwise the main shareholders will lose all the management rights [in? Lietuvos? Dujos itself], and the minority shareholder, which is the government, will take all the rights," Hockertz said.
"That, of course, is an unacceptable situation for the strategic shareholders, E.ON Ruhrgas and Gazprom, which together hold 76 percent and might have no say whatsoever," he said.
E.ON holds 38.92 percent,? Russia's Gazprom 37.06 percent, the? Lithuanian government? 17.7 percent and small shareholders 6.32 percent of? Lietuvos? Dujos.
The rules require the spinoff by the end of July 2013 and E.ON and Gazprom to sell their stakes in the new company by the end of October 2014.
Russian state-controlled Gazprom,? Europe's top gas supplier, has strongly criticized the move to separate gas transportation and supply businesses.? Moscow? has threatened to take? Lithuania? to an international arbitration over Gazprom's investments.
Gazprom and E.ON also hold stakes in other Baltic utilities.
Estonian gas utility Eesti Gaas is expected to sell its gas transportation business by the end of 2015, and? Latvia? is expected to take decisions on unbundling shortly.
E.ON said in October that it would sell all its interest in? Finland, where it has a 20 percent stake in gas supplier? Gasum.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.