Lituanica

Lithuania was the sole of 27 EU member states, represented in the European Union’s (EU) General Affairs and External Relations Council’s (GAERC) session in Luxembourg last week to dissent to the proposal to begin talks with Russia over the new partnership agreement.

The countries decided that EU-presidency holder Slovenia’s Foreign Minister Dimitri Rupel arrived to Vilnius to further harmonize stances on the issue.  Amongst those who arrived to Vilnius were the Swedish and Polish Ministers of Foreign affairs.  However, another issue for the Lithuanians was of another importance, expression of support to Georgia.  The plan was that all ministers should visit Tbilisi on Monday and show their support to Georgia.

However, the Lithuanian diplomats had have heard a warning from Slovenian Foreign Minister Dimitri Rupel that he would accompany his Lithuanian, Polish and Swedish colleagues to Georgia only if Lithuania abandoned its proposals to the mandate of strategic talks between the European Union and Russia.  An anonymous Lithuanian diplomat expressed his disappointment by saying “How can one propose such exchange? It is incomprehensible whether the proposal from the European Union’s presiding country Slovenia indicates the entire EU’s stance on Georgia or is it a lame Slovenian proposal aimed at forcing Lithuania to give up its legitimate requirements in the discussion of the negotiating position of the EU-Russian strategic partnership agreement”.

However, after discussion in the Stikliai hotel the Lithuanians claimed that the EU had agreed with all Lithuanian propositions with some amendments.  The Lithuanian FM stated that the EU solidarity exists not only in declarations but also in reality.  Still he remained that the positions will have to be agreed with the other 23 Member States.  The Slovenian MF noted in the press conference that: ‘All Europeans States and the EU Members understand Lithuanian position.  And I can easy tell that I understand the Lithuanian concerns’.  So, what are those demands?

As Lietuvos Rytas daily wrote last week, Lithuania decided not to approve the mandate for the EU-Russia negotiations until this mandate reflects Lithuania’s interests. This was the first time Lithuania has dared to fight for its interests in the EU with such fervour.

Vilnius demands to add to the energy declaration Russia’s commitment to observe the requirements provided for in the Energy Charter Agreement.

Moreover, Lithuania wanted the EU negotiations mandate to include the point that Russia should cooperate more actively in the field of renewing delivery of crude oil via the Friendship (Druzhba) Pipeline. This pipeline was closed in 2006 for “political repairs.”

As the Lithuanian Minister of Foreign affairs noted “Druzhba was cut off without an explanation. (…) We are worried that Russia is creating a precedent. Energy security and creating a precedent are issues of interest to the EU. This is not a bipartite issue. And we believe that the question of a precedent, and of how far one can go in not cooperating with one EU state is important to the entire EU as well. We have an alternative for Druzhba, but not one for gas”.

Lithuania also noted that Russia’s attitude toward its neighbours is related to the security of Lithuania and the entire EU. This is why Lithuania proposes a declaration on Georgia and Moldova.

Moreover, Lithuania would like to have a declaration on legal cooperation, which should promote constructive cooperation in the investigations of the 13 January 1991 events in Vilnius and the 31 July 1991 massacre in Medininkai, as well as of the disappearance of EU citizens in Russia.  There is also an ongoing case of disappearance of Lithuanian businessmen Mr Jucys in Kaliningrad a year ago.

Lithuanian is also seeking to add an additional declaration to the negotiations mandate to compensate for the damages incurred by the persons deported from the occupied Baltic countries. Ensuring such support to the deported persons was one of the international commitments Russia undertook when it joined the Council of Europe.

Lithuania does not impose demands on Russia. It urges the EU to protect Lithuania’s interests, the same way it protects the interests of other EU members.  Lithuania is not trying to change Russia, it is impossible, it simply tries to change the EU attitude towards Russia, in sake of the EU.

The another point is that Lithuania is a Member State, the same as Germany, France, Italy, Cyprus, Greece, Poland or Ireland who are also defending their interests by blocking decision making.  However, Lithuania is standing not only for the ‘meet’ as the Poles did, but for the values of justice.

Lets see how it will go.

As the BNS informed the Lithuanian press is seen as having one of the highest levels of free press among Eastern European and post-Soviet countries and is even ahead of counterparts in some of European Union’s (EU) old-timer countries.

According to the BNS this finding was revealed by the Global Press Freedom Survey 2008 announced by US-based NGO Freedom House, promoting global development of freedom.

BNS pointed out that as shown in the survey, Lithuania together with the Czech Republic share the second and third places ,both countries were rated 18, among Central and Eastern Europe as well as former Soviet Union countries according to freedom of press. Estonia is a leader when it comes to freedom of press in this group of countries, and received the rating of 16 in the report.

The aforementioned countries, together with slightly lower rated Hungary, Latvia, Slovakia, Slovenia and Poland, made it to the ranks of nations, which enjoy free press.

Lithuania has always been known for its Agriculture sector.  However, the steep rise of the other sectors left the agriculture sector lagging behind and the sector’s contributions to the national GDP is in constant decline.

Never the less, apparently doomed industry is experiencing a revival.  This process is not confined only to Lithuania; this is the world’s tendency.  The recent grab of the ‘Agrowill Group’ stock in the auction only reveilles that the sector is on the way to recovery.  Especially encouraging sign for the company and for the sector as a whole is that the Scandinavian funds bought about 95% of all shares.

Interestingly enough, the business daily ‘Verslo Zinios’ (owned by the Swedish capital) announced an interesting article.  Minister of the Foreign Affairs, Mr Vaitiekunas paid a visit to Kuwait last month.  He also brought a large delegation of the Lithuanian businessmen with him.

Apparently the representatives of the Lithuanian Agriculture sector had a proposal from the Kuwaiti businessman to replace the Danish agriculture products in Kuwait.  This is of course an aftermath of the caricature scandal in 2005.  As the article claims, the Lithuanians have a great opportunity to replace all Scandinavian products in the Gulf States.  According to the paper the Gulf States imported USD12 bln worth of the agriculture products in 2006, or 98% of all agriculture products.

The Lithuanians are shocked with the proposal and admit that this would be a huge challenge to the sector.  Not the major concern I guess but rather important to the Lithuanians how to not offend our strategic partners! Hence, the Lithuanian businessmen are considering cooperating with their Scandinavian colleagues and becoming an intermediate between the Gulf States and Scandinavia.  The Scandinavians could send their products to Lithuania and the Lithuanians could pack them into the Lithuanian packages and provide the products to the Gulf States!  The wolf is fed and the sheep is intact!

At first I was convinced that this was an April fools’ joke.  Well, it was not – the Lithuanian Parliament Seimas failed to recognise the Kosovo Independence. The draft resolution was returned for improvement, even though some MPs were shrugging over what’s left to change.  What have happened in Seimas?

As the BNS those parliamentarians who didn’t approve the recognition of a new state and raised the question of how Kosovo Albanians, which constitute an ethnic majority in the region, are different from other peoples striving for independence - the Kurds in Turkey, Basks in Spain, inhabitants of Abkhazia and South Osetia in Georgia.

The MP and member of Liberal Movement Party Austrevicius mentioned to the BNS that “It now seems that Lithuania has some sort of specific motives for disapproving Kosovo’s independence “.

The President Adamkus, who welcomed Kosovo independence already in February 17 was rather disappointed about the decision.  Just before the President left for the for the NATO summit in Bucharest he issued a press release.  In it the President maintained that a “such an irresponsible and unprofessional attitude towards a new state is detrimental to thus far coordinated and authority-carrying Lithuania’s foreign policy and degrading to our international prestige”.

He reminded the Parliamentarians “The most renowned lawyers, diplomats and politicians of the Euro-Atlantic community agreed that Kosovo’s case was unique and cannot, for many reasons, become a precedent for autonomy-seeking territories in Georgia and Moldova”.

So, what has had happened in the April Fools’ Day in Seimas?  There are few explanations.  The first theory worth of the April Fools’ Day is that the critical mass of the Parliamentarians did not participate in the voting since they were away… celebrating their colleague’s fiftieth anniversary.  The MP is Mr. Sabatauskas, a Social Democrat and a head of an influential Seimas’ Committee of the Legal Affairs.  I was shocked not because of the birthday as such, but after finding out that Mr. Sabatauskas is actually only 50!  I would never give him more than 40!

However, another reason is rather controversial.  Amid the growing interest of the Lithuanian businessmen in Balkan countries, Lithuania is considering opening a diplomatic mission in the region.  As the PM Kirkilas said to the BNS the mission could be established in Serbia, with the diplomats representing Lithuanian businessmen’s interests in Montenegro, as well.  “I believe that if we decide to open a mission, it will most likely be based in Serbia,” Kirkilas noted to the BNS.

Hence, keeping in mind Belgrade’s reactions to the countries, which are recognising the Kosovo independence a long work of establishing of the Lithuanian embassy in Serbia would certainly slip away for some time to come.  The Lithuanian business lobby had put some pressure on the government to open the embassy as soon as possible.  Never the less, the same Lithuanian business lobby was advising to the President Adamkus to attend the 60^th World War Two celebrations in Moscow.

All situation is rather peculiar since the Lithuanian Ministry of Foreign Affairs, which acts hand in hand with the Presidential office almost, ignored Seimas’ April 1 decision regarding Kosovo.  It looks as though this time the business lobby had prevailed over Lithuania’s strive to not to fall out of its allies choir in Kosovo affair.  All Lithuania’s major allies in Nato and in the EU had recognised the Kosovo Independence already, including the USA, the Baltic States, most of the Nordic nations and Poland.

Even though the Seimas Chairman of the Foreign Affairs Committee MP Karosas acknowledged that the resolution over Kosovo will be adopted after amendments in few weeks, the April 1 decision rose some eyebrows in few capitals already.  Who would claim that the Lithuanian politicians don’t listen to the basketball supporters!

Today, 18 years ago in 1990, March 11, Lithuanian Supreme Soviet declared restoration of independence of Lithuania.  During one of meetings historian Prof Bumbliauskas rhetorically observed that for some foreigners it might be confusing the share amount of the National days we celebrate.

One of the reasons for that is simple: we lost our Independence rather few times in the past.  But the historian noticed that even though July 6^th (the Coronation of our King Mindaugas in 1253), or foundation of the first republic in February 16 in 1918, were crucial for our nation, those dates were not that too important in the context of the history of the World.  However, in Prof Bumbliauskas opinion 1990 March 11 had played an important role in the world’s history.

The Polish and the Czech input in ‘breaking the Eastern block’ is unquestionable.  The Estonians had begun the National movement before the Lithuanians did.  However, the Lithuanians started process of the USSR’s disintegration in March 11, 1990.  The Russian Democrats looked up at Lithuania as an example, especially in the events during the August Putsch in Moscow.

The Lithuanians tend to be too pessimistic and critical of Lithuania.  However, the Yale Professor Tomas Venclova is much more optimistic.  He declared that despite internal problems those last 18 years should be regarded as the most successful period in Lithuania’s 1.000 years history.  In this short time we managed to become full fledged members of the Western club.

Just few numbers – in 1990 the Lithuanian GDP was 153 mln Litas, or 36 Litas per person.  1 USD was 4 Litas in 1990.  Lithuanian GDP in 2007 was 27.257,1 mln Litas or 28.661 Litas per person.  1 USD is 2.24 LTL today.  Well, it is success.

Gorbachev was warning Lithuanians that if we will separate from the USSR we will die from hunger, since we don’t have any mineral recourses.  Well, he was right about the mineral resources, however, he forgot about the other resource - the people.

Give it another 18 years of Independence and if Lithuania will be allowed to develop without major interactions from our Eastern neighbour we will achieve the average EU GDP and will be heading to catch up with Scandinavia!  Just watch! 

The Lithuanian news portal alfa.lt published an interview with Edward Lucas.  Lucas was the first foreigner to receive a Lithuanian visa after the country proclaimed its independence from the Soviet empire exactly eighteen years ago today, on March 11, 1990.

His first book, The New Cold War: How the Kremlin Menaces both Russia and the West, was launched at the beginning of February. A Lithuanian edition was released three weeks later.  Read all interview

All Lithuania celebrated the 90^th Independence Day.  In 1918, February 16 group of 20 Lithuanian intellectuals gathered in Vilnius and declared Lithuania’s Independence.  A week later the Estonians followed suit, the Latvians caught up in November of 1918.

I am not going to remind you importance of this day in the Lithuanian history, and would recommend you to visit the Wikipedia site.  I would like to talk about the present.

Interestingly enough but the Baltic States of Lithuanian, Latvia and Estonia has a great tradition of raising the flags of all three countries in marking each country’s Independence Day.

This was decided when the three Baltic States regained their hard thought Independence in 1990.  However, few years later our states turned into competitors, even in achieving their strategic aims of joining the NATO, and especially the EU.  Of course, there is nothing wrong with a good competition, and after all, perhaps because of that the occupied ex-Soviet provinces managed to catch up and join the EU together with Eastern European States like Czech Republic and Slovenia.

The well-deserved Baltic States acceptance to the Western political and security club almost left those states without a future direction.  There is a feeling of achievement and calmness, and an attitude that since we are in, we are safe, prevails.  Estonia is concentrated in becoming a Golden Province of the EU and completely turned into itself in perusing its goal.

Furthermore, Riga is experiencing the ‘eyes opening revelation’ and is conciliating of becoming a Russian advocates in the Brussels.  The influx of the Russian investment into Riga is playing its part in ‘turning’ some politicians into ‘friendly’ mood.  Of course, one has to have in mind a ‘delicate’ size of the national minority, especially in Riga.  If one is running Riga, one could run the all country.

In short the Baltic States are so pleased with themselves to such extend that we begun to forget our history lessons.  We can survive only when we stick together.  Lets remember 1920s and 1930s when we never managed to create a block together and lost our independence, and lets compare it to the 1990s.  The Economist called Latvia a ‘swing state’, which is starting to become manipulated by the Kremlin.  The same author warns that Russia is starting to retrieve the Eastern European states ‘not by tanks but by banks’.  Edward Lucas also notices that the West is loosing its influence in the Eastern Europe and is ‘rolling back’.

In short the Empire is striking back.  The Baltic States should drop an illusion that the ‘West will help us’ and start uniting its act together.  The West will not help anyone unless one is willing to help yourself.  The Baltic States should enhance their cooperation and start thinking about the Baltic region as one entity.  At least the three should begin cooperating closely in the security and information areas.  If the Finnish President voiced an initiative to begin an enhanced cooperation in security amongst the Baltic and Nordic States it should be taken as a wake up call to the region.

The Baltic States are also loosing the information war to Russia.  An average Balt knows much better what is happening in London or in Stockholm rather than in Vilnius, Tallinn or Riga.  Apart from the Baltic Times weekly there is not a Pan Baltic information outlet, which would cover all three Baltic States.  I am not talking about the City Paper that is based in Riga but writes mainly about Estonia that is not a bad think in itself.  A trouble with the Baltic Times is that, at least in Lithuania, we have very few politicians with a decent command of English, even though the young generation has no problem with that.

Despite the advancement of the IT the absolute majority of the Balts receive their main news from the TV.  Hence, what about a Pan Baltic TV channel which would broadcast in all three languages with the local subtitles.  Such a channel could ‘introduce’ all three states to each other, and hence will make us closer.  From what I understand the Lithuanian National translator approached the Latvian colleagues with such an idea.  However, the answer was negative due to lack of funding.

The Romans wisely observed that if a nation doesn’t provide for its own army, sooner of latter it will have to provide for the foreign troops.  The Baltic States already providing to the foreign troops, in the face of the Pan Baltic Kremlin’s financed Russian language First Baltic Channel, which is, by coincidence is registered in Riga. Lets hope that the New Pan Baltic and the Polish Ignalina Nuclear Plant project will be a source of growing unity amongst all four and especially amongst the Balts.  The project might take more than a decade to complete, hence we will be compelled to cooperate and get know each other better.

Lets hope that the news about the building of the plant will reach the general participant countries’ public not only via the First Baltic Channel, Regnum.ru or other Kremlin controlled media outlets but by our own media outlets.  The Kremlin is extremely skilful in manipulating information to its own needs.  Hence, lets unite, lets work together!

The Lithuanian President Valdas Adamkus signed the amendments to the nuclear power plant law on February 12.  The signed amendments gave way for establishment of a national investor company Leo LT, which to be involved in construction of a nuclear plant and energy links with the West. A day before the President told to the Lithuanian media that he would be criticised if either way, so he decided to sign the document.

The President issued statement to the nation saying that “I came to this decision without any outside influences, any persuasion attempts, and having considered all the discussions, what was said and requested, I did this following my own consciousness, thinking that this is the sole best decision for the future at this time.”
The law was actively discussed in Lithuanian public.  I would like to present few pros and cons from the discussion: 

Arguments against;

There are no calculations how much it will cost

Will the electricity for the Lithuanian consumer be cheaper

Will the Nuclear plant reduce Lithuania’s dependency on Russia

The privatisation of the NDX lacked transparency

The private investor got the best deal out of it, the stata was robed

The State will held less than two thirds of the shares

The private investor will control all process since the public sector is weakThere are not enough safeguards to obligate the LEO LT to build the plant and the links with Poland and Sweden

The process was not transparent, no competition, Adamkus had met with the NDX half a year ago without an official announcement, same with PM Kirkilas. and etc.Only 63 parliamentarians out of 141 voted in favour of this crucially important project

Inviting a Vilniaus Prekyba Goupr to the the project would go against President’s warnings about dangers of oligarchy in politics and business

Unclear if this merger will not clash with the new EU legislation on separation of the energy destribution and production

Construction of the Plant will divert Lithuania’s attention away from developing the renewable energy capacity

Kuodis, Lithuanian National Bank
Everything taking place in the Lithuanian energy sector after VST privatization is, to my mind, one big affair crowned by the national investor”. The legislation stipulates two different processes:
the construction of the nuclear power plant,
studies into its necessity and a determination to solve energy problems of the country or entire region on one hand and financing issues on the other.

“Now we see the national investor project pushed into the Seimas under the disguise of the nuclear power plant,” said the economic analyst. The decision to construct a power plant is followed by a year of design works, which do not require extensive funding and can be funded by the state.

Foreign investors should not be ruled out in the solution of the financing matter.Consequences of the legislation to ordinary users, in Kuodis’ words, should be described in relevant studies that were never carried out.

He said this led to fears that the new power plant could be not competitive.

Arguments in favour:

All process was clear and transparent

We cannot wait any longer, since our partners (the other Balts and Poland) might find another alternatives

There are enough safeguards against for the state

The private partner will give all project an energy, expertise and aggressiveness

The cooperation will create the strongest company in the region

The state could not afford finically to undertake such project on its own Vilniaus prekyba  (the private investor) arguments:

We’ve spoken out our clear and rooted attitude, that Lithuania must reach independence in the domain of energy”

The VP group assured of having made a commitment to the president to review controversially acclaimed draft settlement agreements.’ We have very explicitly committed to participate and we confirm this. This is a firm stance of our company”

We don’t want the Lietuvos Energija to be the mother company of the investor since we don’t want to build the Plant for the Russians

We live here; we will build the plant and the links to the West since we want our children to live in a free and prosperous Lithuania.

The President noted to having written a long letter to Prime Minister Gediminas Kirkilas: “I signed the law and right away wrote a letter to the prime minister, expounding on the entire situation, and setting certain conditions. I hope that the government, prime minister will pay due attention to those conditions outlined by myself and will manage this whole thing with the future in mind”.

As the BNS informs the main requirement made in the letter of the president, was that Lithuania’s interests be given due consideration, no parties be given privileges and the entire implementation of the project be transparent, clear and understandable to the Lithuanian people.

The PM Kirkilas told the press that he has not yet had the time to read the letter, however promised to take all of the president’s requirements into considerations, just as long as the “possibilities and legislation allow”.  “In the short run, after the main negotiator - the Economy Minister - returns from Poland, we will all sit down at a table and definitely implement all of the president’s proposals”, Kirkilas said.

The PM said he believes that Leo LT will be created by beginning of May, and will begin negotiations over establishing a common company with Latvia, Estonia and Poland shortly thereafter: “Those negotiations will not be simple either”.

The Lithuanian PM Kirkilas on the other hand will propose that the government form a supervisory committee for the national investor, which is to be involved in constructing a new nuclear power plant and energy links with Sweden and Poland.

According to the PM press office press release the committee would supervise and coordinate the activities representing the nation’s - as shareholder’s of Leo LT - interests and make respective proposals to the government about constant improvement of this activity, the governmental press service said.

The press service also stated that the prime minister will propose that representatives from the State Security Department, National Control, National Control Commission for Prices and Energy Commission, and respective ministries get involved in the activity of the new supervisory committee.

After signing the amendments the President went to Poland were he participated in signing the documents of creation a joint company joint company, which will build a link between the two countries.

Well, it has to be said that this week was exceptionally busy in the Lithuanian energy sector. This blog will write more about the latest Lithuanian Polish deal in Warsaw.

The Swedish Vice-PM Mrs. Olofsson visited Lithuania on 5-6 February.  The visit has attracted a wide Lithuanian media attention.  The reason for this attention was that the visit took place in the heated debates on the energy issues background.  The Law of the establishment of the National Investor the LEO LT passed the parliament few days before, there is an intensive debate about prolonging of the Ignalina Power Plant life span and a debate what will happen when (if) the plant will terminate its electricity production at the end of 2009.  Only a thought that the Ignalina provides 75% of all electricity in Lithuania and that Lithuania still has no electrical connections to the West raises the temperature in Lithuanian political scene.  Not to mention that the elections to Seimas will take place in October.In addition another important event took only a day before the Vice-PM’s visit.  Lithuanian Lietuvos Energija and its Swedish counterpart, Svenska Kraftnat, completed a feasibility study on linking the energy systems of the two countries. The heads of the two companies signed in Stockholm a memorandum stating their intentions to continue cooperation on the project on February 5.

The Nord Stream was also discussed.  The President’s press office stated that “Lithuania is particularly alarmed over the impact of the Baltic pipeline to the ecology of the Baltic Sea, therefore, we cannot come up with argumentation why the Amber Pipe project was not planned via the Baltics of territories of other EU members.”Furthermore, the press office informed that Mrs. Olofsson underscored that all matters relating to the ecology of the Baltic Sea required professional analysis and assessment. In her words, Sweden and its companies are willing to share their technological experience in generating energy from renewable sources and reduction of climate pollution.

Hence, the Swedish-Lithuanian energy cooperation is getting a shape and is intensifying, better later that never.  ‘Let’s get connected!’