Lithuania eyes short-term, higher-fee gas transit deal with Russia

Lithuanian and Russian energy companies are holding negotiations on extending the gas transit agreement to Kaliningrad, which is set to expire in December.

According to Lithuanian media, Lithuania’s gas transmission system operator Amber Grid and Russia’s Gazprom are in discussions to prolong the deal that allows the transit of Russian gas through Lithuanian territory to the Kaliningrad exclave.

Sources report that the two sides may agree on a shorter-term extension for the new contract, potentially with higher service fees.

The European Commission has been informed of the negotiations, as any decision on extending the transit arrangement must involve EU institutions, not only bilateral parties.

The current ten-year agreement with Gazprom, signed at the end of 2015, is due to expire in December 2025. The previous contract had been in force since 1999.

Lithuanian President Gitanas Nausėda earlier stated that he sees no reason why the contract could not be renewed, provided it remains beneficial to Vilnius. He noted that Lithuania is ready to ensure gas transit to the Russian exclave but only under conditions consistent with its national interests and European regulations.

Former Minister of Energy Žygimantas Vaičiūnas said that Lithuania earns up to €20 million annually from gas transit, while LRT reports that average revenue is around €12 million per year.

It should be recalled that Lithuania completely stopped importing Russian gas in April 2022, maintaining only transit supplies to the Kaliningrad region, which continue via Belarus and across Lithuanian territory.

Meanwhile, on October 31, Lithuanian Railways announced the suspension of Russian oil transit due to U.S. and U.K. sanctions. Starting November 21, no shipments of Lukoil or Rosneft products will be transported through the country.

As reported, Lithuanian Railways will comply with US and UK sanctions that restrict sales from major Russian oil companies and will cease all such transit operations.

By Tamilla Hasanova