Observer "Lietuva"
Lithuania Business News: Archive 2003-

WEEK 1.2008

Saturday, 5th of January

Latvia will cooperate with Lithuania
Latvian Economics Minister Kaspars Gerhards reiterated on Friday that his country was interested in the planned construction of a new nuclear power plant in Lithuania and other major energy projects. "We are thinking about an (energy) interconnection project between Latvia and Sweden and we are glad to see that Lithuania is looking into the same direction," he said. The Latvian minister did not rule out that the nuclear power plant project might be implemented without Poland's participation, noting that the original plan was that only the three Baltic countries would build the facility. "What is most important is that we keep up the tempo and continue to move forward," he said. Gerhards confirmed that Latvia would want at least a 400-megawatt share of the nuclear plant's output. Navickas said, "In addition to the atomic power station and the (energy) bridge to Sweden, we agreed to maintain the relations with Poland, too, because our road to Germany goes through Poland, and we agreed that the ministers of the four countries would meet in Vilnius in the last week of January to discuss all the joint projects." The Lithuanian minister said that his Latvian counterpart and he had also discussed the issue of gas supplies and agreed that the three Baltic countries should set up a joint task group to look into the possibilities of improving the functioning of the region's gas sector.

Yield on privatization totalled LTL 246.777
Lithuania's yield on privatization totalled LTL 246.777 million in 2007, a surge from the year-earlier figure of LTL 142.924 million. Proceeds on privatization of state assets made up LTL 65.938 million, with the receipts on the sell-off of municipal assets coming in at LTL 180.839 million, the State Property Fund (SPF) said in a statement. The list of largest privatization transactions was topped by the sale of 100 percent of Lietuva sanatorium for LTL 31.152 million, and the divestment of 51 percent stake in Birstono Saltinis for LTL 10.25 million. Moreover, the authorities sold administrative premises at the Gediminas Avenue in Vilnius for LTL 22.1 million.

Strategic status for Leo LT
The Lithuanian government is expected to discuss next week a proposal to add Leo LT, a new company that is being established as an investment vehicle in key energy projects, to the list of enterprises of strategic importance, officials said. It will be proposed that the parliament consider these amendments along with amendments to a law on the planned new nuclear power plant and draft agreement between the government and NDX Energija on merging their assets to create Leo LT. The parliament will be asked to discuss all the documents on a priority basis. Debates are expected to start on January 11 and the documents to be passed by the middle of the month.
Lietuvos Zinios

Friday, 4th of January

Klaipeda Oil reports figures
Lithuania's state-run oil product terminal operator Klaipedos Nafta (Klaipeda Oil) reported on Thursday increase in full-year revenues to LTL 77.9 million. The terminal handled 5.403 million tons of oil products last year, down 1.9 percent from 5.5 million tons the previous year, the company said in a statement to the Vilnius Stock Exchange (VSE). Klaipedos Nafta projected an annual profit of LTL 8.8 million for 2007, on revenue of LTL 75.9 million.
Respublika, Verslo Zinios, Lietuvos Rytas

Figures of Lithuanian dairy sector
Total sales revenues of the Lithuanian dairy sector rose by 32 percent in the first nine months of last year from a year earlier to reach LTL 1.660 billion excluding VAT and excises, the Economy Ministry said in its latest Economic Overview report on Thursday. The data do not include revenues from sales of ice-cream and liquid whey. Almost all fresh dairy products manufactured in Lithuania are sold domestically, while the bulk of fermented cheese, butter, canned milk and dry milk products are exported to foreign countries.
Kauno Diena, Lietuvos Rytas

Sugar production in Lithuania
14.1 thousand tons of white sugar were produced in Lithuania during the nine months in 2007, it is by five times more than in January and September of 2006. 107 thousand tons of sugar beets were bought on October 1 last year, the sugar level of sugar beets reached 16.9 percent.
Lietuvos Rytas

Thursday, 3rd of January

Ignalina nuclear power plant generated 9.8 billion kWh of electricity
Ignalina nuclear power plant (INPP) generated 9.8 billion kWh of electricity in 2007. In December alone, the output almost doubled, to reach 1.008 billion kWh. The sales rose to 932 million kWh. In line with Lithuania's pre-accession commitments to the EU, the first unit of INPP was shut down late in 2004, while the second should be stopped late in 2009.

Apranga presents numbers
Apranga, the Baltics' leading clothing retailer, achieved LTL 437.4 million in consolidated sales for the full year 2007, a rise of 46 percent from the previous year, preliminary figures showed on Wednesday. Sales in Latvia grew by 55.8 percent to LTL 110.2 million, or 25.2 percent of the overall sales. In Estonia, sales growth was 26.7 percent to LTL 38.6 million. MG Baltic, one of Lithuania's biggest business conglomerates, controls a majority interest in Apranga via its investment arm, MG Baltic Investment.
Respublika, Verslo Zinios

New bank registered in Lithuania
A new bank, Finasta, was registered in Lithuania on Wednesday. This will be the tenth commercial bank operating in the country and the first bank to focus on investment services. "The registration as a legal entity marks an important legal step in the establishment of a bank: its board starts working once the registration is confirmed," said Dalius Kaziunas, director of the financial brokerage company Finasta. The new bank expects to formally start operations in the second quarter of this year after obtaining an operating license from the Bank of Lithuania, the company said. Finasta Imoniu Finansai (Finasta Corporate Finance), a subsidiary of Invalda, owns 100 percent of shares in the Finasta bank, which has a stock capital of LTL 20 million.
Respublika, Lietuvos Rytas

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