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Vilnius Offers Price Advice to Gazprom

Lithuanian Prime Minister Andrius Kubilius suggested on Friday that Gazprom update its pricing policies in view of the global gas glut, the latest barb fired at the world's biggest gas producer over its steep bills.

Vilnius is considering building a terminal to import liquefied natural gas, which is shipped by tankers rather than by pipeline, Kubilius said, apparently implying that Gazprom could lose out against suppliers that offer the fuel at much lower prices now. Lithuania could pursue the project by itself or in conjunction with some other Baltic countries, he said, without elaborating.

“We believe Gazprom will also look at the global developments from the prospective of modernizing its pricing policy,” Kubilius said in a meeting with Prime Minister Vladimir Putin on the first visit by the Lithuanian prime minister to Moscow after a six-year break caused by political differences.

He came on a private trip for the opening of the International Rostropovich Festival, named after the late cellist and conductor Mstislav Rostropovich. Kubilius's wife plays in the symphony orchestra that Rostropovich used to conduct.

Lithuania may need more gas, including from Gazprom, to produce electricity after it shut down the outdated Ingalina nuclear energy plant last year. The Baltic state, which used to import 3 billion cubic meters of gas from Gazprom annually, may have to increase its consumption by 150 percent to 200 percent, the Cabinet said in a statement Wednesday that gave an overview of relations between the countries.

The country plans to build another nuclear power facility on the same site, a project that would not start operating until 2015 to 2019, the statement said. Kubilius said the government could announce a winner by the middle of this year in an international tender for a strategic investor to help build the facility.

During a meeting with the Lithuanian president last month, Putin proposed that the country join in the construction of a 2.3-gigawatt nuclear power plant in Kaliningrad. Grybauskaite declined the offer, saying Vilnius intended to complete its own plant.

Kubilius also thanked Russia for terminating the suspension of imports of Lithuanian dairy products.

Putin said the countries needed to work together because they shared common interests in energy and infrastructure.

“I think we can and should rebuild very much,” Putin said, referring to bilateral relations.

Before the leaders began their closed-door talks, Putin recalled that he won a championship in sambo, a Russian form of martial arts, that took place in Lithuania in the Soviet past.

Kubilius invited him to attend a summit of the Baltic states on June 1 and 2, noting that German Chancellor Angela Merkel had agreed to attend. No sambo events are planned for the meeting, Kubilius said, proposing that they instead compete in a bicycle trek.

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