The draft Agreement

The draft agreement between the Lithuanian Mazeikiu Nafta and the Russian YUCO specifying conditions of the sale of 26.85% of the Mazeikiu Nafta stock provides an option for buying in 2004 the share currently held by the American Williams. This has been communicated by a source close to the deal. The Mazeikiu Nafta sale to YUCO presupposes additional stock emission, which will make the Williams share equal to 26.85% as well. However, Eduardas Vilkas, Chairman of the privatization commission, doubted this information. YUCO intends to complete the deal acquiring a 26.85% share in Mazeikiu Nafta by the end of October 2001. The cost of the transaction is $75 million. On finalizing the documents the American Williams concern currently holding 33% in Mazeikiu Nafta and YUCO will both have 26.85%.