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Russia stops Lithuania refinery oil supply

Posted : Thu, 22 Nov 2007 17:25:29 GMT
By : Business News Editor
Category : Finance (General)
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WARSAW, Poland, Nov. 22 Russia has announced it will stop supplying oil to a Polish-owned refinery in Lithuania because its "Friendship" pipeline link was damaged beyond repair.

Poland's PKN Orlen oil company acquired the Lithuanian Maziekiu oil refinery for $2.5 billion in 2006 when it outbid Russian contenders, the Polish News.pl Web site reported Thursday.

Viktor Christienka, Russian industry and energy minister, Wednesday told the Lithuanian daily Lietuvos Rytas the refusal to continue supplying oil via the pipeline cannot be considered as Moscow's revenge on Polish acquisition of the refinery.

Christienka said the repair of the "Friendship" link to the Maziekiu refinery in Lithuania was not feasible and added no "political causes" should be seen in Russia's decision to stop using the pipeline.

The Maziekiu refinery will have to begin using tankers sailing in the Baltic Sea to transport oil, a much more costly means than the pipeline, Polish Radio said.

Copyright 2007 by UPI

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