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Lithuania Business News: Archive 2003-

WEEK 28.2007

Saturday, 14th of July

SODRA runs budget deficit
The Lithuanian State Social Insurance Fund (Sodra) ran a budget deficit of LTL 32.8 million) in the first half of 2007. Six-month revenues totalled LTL 4.374 billion, 8.8 percent above the target and 27.9 percent higher than in the same period of 2006, Sodra said in a statement on preliminary interim figures. Expenditures, at LTL 4.407 billion, exceeded the target by LTL 172.9 million or 4.1 percent, and were 31.5 percent higher than a year ago.

Siauliu Bankas’ bonds
Siauliu Bankas begins disseminating its new bonds on July 18. The public offering is meant only for those, who had the shares of the bank since March 29, 2007. The price of one share is LTL 2.30; they are distributed in the central office of the Siauliu Bankas in Siauliai and in other territorial departments.
Respublika, Lietuvos Rytas, Kauno Diena

Lithuanian concerns
Lithuanians are mostly concerned over inflation and criminality, the spring Eurobarometer survey has shown. As much as 44 percent said to be mostly concerned with criminality, while 38 percent singled out rising prices as the main problem of the country. Some 26 percent said to be concerned over the state of national economy. Across the European Union (EU), the average number of respondents mostly concerned over criminality, inflation and the state of national economy was much lower.Lietuvos Zinios

Friday, 13th of July

Maxima LT reports numbers
Maxima LT, the largest retailer in the Baltics, reported LTL 3.7 billion in sales in Lithuania, Latvia, Estonia, Romania and Bulgaria in the first half of 2007, a surge of 28 percent from the year-earlier figure of LTL 2.885 billion. Sales in Bulgaria and Estonia posted the steepest growth - at 83.6 percent and 57 percent, respectively. Sales in Lithuania rose by 26.7 percent, while in Latvia the sales increased by 22 percent, the company said in a statement.
Lietuvos Rytas, Respublika

Russian response about Druzhba pipeline
Russia's officials are still dodging the issue of possible resumption of crude supply to Lithuania's oil complex Mazeikiu Nafta (Mazeikiai Oil) via Druzhba pipeline. "The pipeline has been closed due to ecological requirements. Experts have submitted over 7,000 critical remarks [concerning the observance of ecological standards at the pipeline]. This is an old pipeline, which may pose problems to environment. Experts are still trying to estimate whether it is worth getting repaired. Yet, the opinion that a new pipeline should be built is prevailing," Sergei Yastrzhembsky, a top aide to Russia's President Vladimir Putin, told the daily. He wondered why Lithuania sought to raise this question in the context of the European Union (EU). "Mazeikiu Nafta gets crude by tankers. Naturally, this is more expensive, yet, this is a problem of a private Polish company," Yastrzhembsky noted.

flyLAL – Lithuanian Airlines reports numbers
flyLAL-Lithuanian Airlines, the Lithuanian-equity airline, carried 231,800 passengers in the first half of 2007, a rise of 12.6 percent from the year-earlier. The airline also reported that it made more charter flights, which carried 57,500 passengers, which is by 2.5 times more than last year at the same time. FlyLAL-Lithuanian Airlines aims to boost the passenger flow by one-third, to 600,000 this year.
Verslo Zinios

Thursday, 12th of July

Inflation rate in Lithuania
Lithuania's average twelve-month inflation rate, as measured by the EU Harmonized Index of Consumer Prices (HICP), hit 4.4 percent in June, the Statistics Department reported. Annual inflation, i.e. compared with June 2006, made up 5 percent. Compared with May, consumer prices in the country edged up by 0.2 percent last month, the department said.
Lietuvos Zinios

Investments into Kaunas
It is not calculated yet, how much would the reconstruction of Kaunas Laisves Square cost. It is only stated that the approximate amount might reach a couple hundreds millions of litas. The mayor of the city Andrius Kupcinskas has pessimistically admitted that only a loan for three million litas could be taken. The mayor is open for any missions or suggestions, however he knows the possibilities. The only thing is clear that the City Council will not be able to take any money from its budget for the reconstruction.
Verslo Zinios

Electricity will become more expensive
The electricity will become more expensive from 2010. It will happen not only because Ignalina nuclear power plant, which produces cheap electricity, is closed. Electricity will also be taxed with the excise payment that year. According to the laws, LTL 1.8 per megawatt-hour payment will be imposed on electricity for business aims; other consumers will have to pay with LTL 3.5 excise tariff. Approximately, the electricity price should increase by LTL 0,12 per kilowatt-hour for residents.
Lietuvos Rytas, Verslo Zinios, Lietuvos Zinios, Kauno Diena

Wednesday, 11th of July

Lithuanian central government’s budget
The Lithuanian central government collected LTL 1.388 billion in budget revenues in June, LTL 9.3 million ahead of the target, the Finance Ministry reported. Total revenues including LTL 337,8 million in EU funds amounted to LTL 1.726 billion last month.
Lietuvos Rytas

Sajiene leaves Utenos Trikotazas
Luxembourg-registered investment fund Amber Trust and Lithuania's SBA concern, the largest shareholders of Utenos Trikotazas (Utena Knitwear), have resolved their differences over the largest Lithuania's knitwear producer. Sajiene said that there was an agreement between the shareholders; she did not know the details. She claimed that she would take a rest after resignation and then would be deciding over new job offers.
Verslo Zinios

Five-month foreign trade deficit
Five-month foreign trade deficit widened by 48.2 percent year-on-year to LTL 7.2 billion, according to preliminary data. The rise in exports was propelled by a 99.3 percent surge in the exports of plastics and plastic articles, a 40.9 percent increase in the exports of ground vehicles, 23.6 percent rise in the exports of machines and mechanical equipment and a 20 percent increase in the exports of furniture. Among imports categories, the largest increase was achieved in the group of organic chemicals (2.9 times), iron and steel (60.3 percent) and ground vehicles (52.8 percent). Russia remained Lithuania's biggest export partner, accounting for 14.2 percent of all exports in the five-month period, followed by Latvia, Germany and Poland.
Verslo Zinios

Tuesday, 10th of July

Beer export in Lithaunia
Lithuania's largest breweries exported 691 thousand decilitres of beer in the first half of this year, up 4.9 percent from the year-earlier figure, the Lithuanian Brewers' Association reported. Kalnapilio-Tauro Grupe (Kalnapilis-Tauras Group) was the largest beer exporter, with exports soaring by 20.4 percent, to 330 thousand dekalitres in the reporting period. In June alone 231 thousand of decilitres of beer were exported, it is by 28.3 percent more than at the same time in 2006.
Lietuvos Rytas

Siauliu Bankas posts number
Siauliu Bankas, the fast-growing Lithuania's commercial bank, posted LTL 20.541 million in unaudited net profit for the first half of 2007, a surge of 2.4 times versus the year-earlier figure of LTL 8.435 million. The Bank hopes for LTL 26 million of net profit throughout the 2007 years. The European Bank for Reconstruction and Development (EBRD) and six other shareholders, hold a combined stake of 39.78 percent in the bank together with associated persons.
Verslo Zinios, Lietuvos Rytas

Sanitas reports its sales
Sanitas, the owner of pharmaceutical plants in Lithuania, Poland and Slovakia, reported consolidated sales of LTL 170.406 million for the first half of 2007, a surge of 3.7 times from the year-earlier figure. In June alone, the consolidated sales soared by 68.1 percent, year-on-year, to LTL 33.516 million, Sanitas said in a statement.
Verslo Zinios, Lietuvos Rytas

Monday, 9th of July

Klaipeda Nafta’s investments
Klaipedos Nafta (Klaipeda Oil), the state-run oil products terminal, might invest into the Odesa-Brody-Plock-Gdansk oil pipeline project. The participants of said meetings discussed ways to implement the declaration on the pipeline signed by Presidents of Lithuania, Poland, Ukraine, Georgia and Azerbaijan, and the special envoy of the Kazakh President in mid-May. The Odesa-Brody-Plock-Gdansk oil pipeline, which is regarded as a new transit route, will be the first to link Caspian and Black Sea region with the Baltic Sea region.
Verslo Zinios

Adamkus signs amendments for alcohol advertisements restrictions
President Valdas Adamkus signed the law amendments legalizing restrictions on ads of alcohol that have caused much discussion and controversy. The amendments to the alcohol regulation law prohibits any advertising of all alcoholic beverages on radio and television from 6 a.m. to 11 p.m. The president's service has reported that Adamkus supports the amendment-stipulated efforts to put a check on the spread of alcohol consumption throughout the society yet believes that restricting ads is not the most effective measure in combating the ever-increasing consumption of alcohol, in particular by teenagers. As this law will only take effect as of next year, the president suggests that the parliament during its autumn session should look into the roots of this phenomenon and propose extra measures to efficiently stop the spread of alcoholism.
Verslo Zinios

Mazeikiu Nafta reports positive numbers
Mazeikiu Nafta CEO Marek Mroczkowski said that Lithuanian oil refining and transportation company Mazeikiu Nafta’s (Mazeikiai Oil) result for the second quarter were positive. Nonetheless, he admits that Mazeikiu Nafta (Mazeikiai Oil) numbers for the first half of this year after ending the first quarter were in the red. Mazeikiu Nafta, which is majority owned by Poland's PKN Orlen, posted consolidated net losses of LTL 134.988 million for the first quarter of this year.
Verslo Zinios

Saturday, 7th of July

Polish leader did not attend ceremony
Three Baltic prime ministers did not sign a declaration on the construction of new nuclear power plant in Lithuania as the Polish government leader failed to attend the ceremony held in Vilnius on Friday. Instead, the prime ministers of three Baltic countries agreed to authorize energy utilities to launch talks on shareholders' agreements. Jaroslaw Kaczynski, prime minister of Poland, which apparently shows interest in the new plant, failed to arrive to Vilnius citing problems in his home country.
Respublika, Lietuvos Zinios

Vilniaus Baldai posts sales
Vilniaus Baldai (Vilnius Furniture) posted LTL 74.331 million in sales for the first half of 2007, a surge from the year-earlier figure of LTL 52.654 million.
In June alone, the sales of the company soared to LTL 14.14 million, while last year it was LTL 8.856 million during the same month. The company projects its full-year profit reaching LTL 15 million on the sales at the end of the year.
Lietuvos Zinios

Rokiskio Suris reports numbers
Rokiskio Suris (Rokiskis Cheese), one of the largest dairy groups in Lithuania, reported its first-half consolidated sales rose by 31.3 percent year-on-year to LTL 312.921 million, based on preliminary data. Rokiskio Suris reported the data to the Vilnius Stock Exchange on Thursday.

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