Lituanica

The BNS reported that, as Lithuanian diplomats spoke up about attempts launched by some countries to revise agreements reached by four foreign ministers in Vilnius over the negotiations mandate on the European Union (EU) - Russia Strategic Partnership Agreement, Foreign Minister Vaitiekunas repeated that Lithuania is not going to back down on fundamental issues.

Lithuania blocked the commencement of talks with Russia, proposing to include four declarations in the negotiations mandate, i.e. the issue of cut-off oil supply via the Druzhba pipeline, the necessity to deal with frozen conflicts in Georgia and Moldova, cooperation in solving occurrences of Jan. 13th and the Medininkai massacre as well as support for exiled persons, who are returning to the Baltic States.

Foreign ministers of Lithuania, Sweden, Poland and current EU presidency holder Slovenia, decided in a meeting in Vilnius on May 11 to include issues brought up by Lithuania to be included in talks with Russia, however this agreement was not endorsed by ambassadors of EU member states in a meeting Tuesday. Ambassadors plan to continue discussions next week.

A Lithuanian diplomat announced this information to BNS May 14 that;”We eliminate such attempts. If they will continue, the mandate might not be approved by May 26 (GAERC)”.

Following a meeting with Lithuanian President Adamkus on 14 May, Vaitiekunas told the press of having informed the Head-of-State of receiving a few proposals by various countries with regards to the negotiations mandate, and they are currently being considered.

“A wide arsenal of different versions of what shape our answers might take is available, and they are currently being coordinated through diplomatic channels, however, when it comes to the main, primary, fundamental issues of Lithuania’s interests, we are not going to back down. (…) We are risking European solidarity”, the foreign minister asserted.

According to the BNS he also noted that the new proposals are most concerned with the issue of frozen conflicts and added that he can reveal neither who is making the proposals, nor what matter they concern.

“In general terms, I am telling you that yes, the main question under revision, is that of frozen conflicts, a declaration on frozen conflicts. Countries stand on different grounds when it comes to geographical and geopolitical positions. Take the United Kingdom, Spain, France - their interests are different and we are simply defending our interests by assuming this position here and now. The EU will have to go a long way in order to learn how to reflect interests unanimously and speak with one voice”, Vaitiekunas explained, noting that an acceptable compromise will be sought out on the issue.

The BNS writes that the minister also noted that he cannot yet reveal what form Lithuania’s demands should take on in the mandate, and in what phrasing should it appear. The minister said that this would mean having to reveal stances on the negotiations mandate and would therefore make them less efficient.

Source BNS

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.

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!

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!’

One of the most significant law in the modern Lithuanian history passed in the Parliament on February 1.  Lithuanian Seimas passed amendments to the bill on nuclear power plant, which will capacitate finishing negotiations between the government and privately owned NDX Energija regarding the national investor.

It is proposed to create Leo LT, which would build a new nuclear power plant and energy links with Poland and Sweden, not through the state-owned Lietuvos Energija - as had been planned before - but through a new company, as NDX energy has bargained with the government.

This new company would incorporate the shares of state-owned Lietuvos Energija and distribution grid operator Rytu Skirstomieji Tinklai (RST) as well as Vakaru Skirstomieji Tinklai (VST), owned by NDX Energy.

This controversial law was widely discussed in the Lithuanian media and amongst the politicians.  Some 63 MPs voted in favour of the amendments, 11 voted against and three abstained.  The voting was boycotted by the Seimas opposition - Liberal Democrats, the Liberal Movement, Liberal Centrist Party, the Conservatives and a few members of other parliamentary groups.

The amendments will take effect if nation’s leader Valdas Adamkus doesn’t veto them.  Conservative Party leader urges Lithuanian president to veto amendments to the nuclear power plant.  As the BNS reported MP Kubilius notes that should nation’s leader Valdas Adamkus not veto the amendments, this would be a signal to entrepreneurs round the country that they can get away with whatever they do and however they choose to do it.

“The negotiations were not transparent, and the government has failed at defending public interest”, Kubilius said in a press conference organized Monday.

He noted that the bill is not flawless, as it was passed without presenting calculations on the expenditures of constructing the new plant and the price of energy it will produce.

The MP added that it is unclear as to how the new plant will incorporate the currently existent Ignalina N-plant’s infrastructure, and how the Kruonis pump storage power plant located in central Lithuania will function.

The government will control 61.7 % and NDX energy will control the remaining 38.3 % in the national investor company Leo LT.

The opposition voiced concerns that the Leo LT’s main objective written in the agreement is not to build the new plant and the links but to seek profit for the company and its share holders.  This aspect concerns Liberal Centrist leader Zuokas.

However, Lithuanian side has kept its promise to create a national investor to begin negotiations with its other partners of Latvia, Estonia and Poland.  The Economy ministers of all three ministers have met in Vilnius today.  The Lithuanian minister Navickas was pleasantly surprised by his Polish counterpart’s initiative.  The Polish Economy minister invited the Lithuanian Economy minister to sign an agreement in establishing a joint company, which will link the Lithuanian, and the Polish electricity grid.

This blog wrote about the negotiations between Lithuanian and Poland regarding the grid.

As the BNS informed Lithuania is interested in building an energy link to Sweden and joining the Nordic energy market without delay.  Lithuanian PM Kirkilas said this during his one day trip to  Stockholm on Tuesday.

As the  PM’s press office wrote at a meeting with Swedish PM Fredrik Reinfeldt, Kirkilas also informed him about the course of development of the new nuclear power plant project, the governmental press service reported.

The heads of the Lithuanian and Swedish governments discussed possible ecologic risks of laying the gas pipeline Nordstream on the bottom of the Baltic Sea. In Kirkilas’ opinion, it requires an independent assessment of environmental effects and consultations with all countries to be influenced by the project.

PM Kirkilas also met with various officials from the sister Social Democratic party and the Trade Unions, addressed the SAMAK’s Annual Meeting 2008.

Since the Lithuanian parliamentary elections are to be held in this Autumn the Lithuanian political parties starting to gather their momentum in the preparation for the election campaign.

The election is not going to straight forward since the populist left and right are gathering the strength and the ‘traditional’ parties such as Social Democrats and the Conservatives will have to be satisfied with bigger or smaller role in one or another coalition.  Still, it is a long way to go, and in Lithuanian political reality it is possible to turn a political tide in one month.

Nevertheless it is interesting that Lithuanian traditional parties ‘discovered’ socially just Sweden ruled by the Centre Right government.

The Conservatives often mention success story of the Swedish Alliance.  Since the Centre Right forces are fractured the Conservatives and the Liberal Movement came up with idea to form a similar Alliance in Lithuania.  This ‘Alliance for Lithuania’ will be presented in Vilnius this Friday.

The Social Democrats, who are in the ruling minority coalition government, and pretty much ‘ruling’ the government also would like to use some of the Swedish experience in the Progressive Taxes.

As daily Respublika mention Prime Minister Kirkilas, meanwhile on the official to Sweden asked the Swedish Social Democrats to help enlighten Lithuanian public about the Progressive Taxation benefits.  According to the paper Kirkilas has invited the head of the Swedish Social Democrats Mona Sahlin to make a speech on the topic in an international conference which will be held next month in Vilnius.

Hence, it will be interesting which party will benefit the most form the positive experience of Lithuanian neighbour.  It might be useful for the both parties to benefit from the same ‘source’ since some commentators predict that the both parties might be forced to create a rainbow coalition after the elections.