The Lithuanian government and the European Bank for Reconstruction and Development (EBRD) consider signing by the end of this year a deal

The Lithuanian government and the European Bank for Reconstruction and Development (EBRD) consider signing by the end of this year a deal under which the bank would acquire an equity stake in Mazeikiu Nafta (Mazeikiai Oil) and provide financing for the modernization of the Lithuanian oil complex. "The EBRD reiterated its interest in investing in Mazeikiu Nafta, both by acquiring shares and by loaning additional funds," Deputy Economy Minister Nerijus Eidukevicius told BNS. "However, the bank needs more information before discussing more specifically the amount of investments or any other details. Therefore, we have agreed that the bank should be given the opportunity to study the situation at Mazeikiu Nafta. Then we can discuss the structure of a deal," he said. Eidukevicius met with Peter Reiniger and Sharlotte Philipps, senior EBRD officials, in London early this week. The deputy minister said the EBRD was offered the investment opportunity and told that the Lithuanian government was open for proposals. The official added, however, that it was not clear yet how many shares the EBRD would like to buy or how many shares the government could offer to sell. The press has reported that the government, which now owns 40.66 percent of Mazeikiu Nafta, will offer to sell 12 percent to 15 percent of the shares to the EBRD. Under the government's agreement with YUKOS, the Russian oil corporation, which owns 53.7 percent of Mazeikiu Nafta, is entitled to acquire a part of the state-owned stake as well. Lithuanian Economy Minister Petras Cesna has said earlier that the EBRD could purchase a part of the state's holding and refinance the loans extended to Mazeikiu Nafta by the government and, possibly, by YUKOS.