ASSESSMENTS

Kaliningrad: Russia's Weak Spot in Talks with Lithuania

Sep 26, 2013 | 10:16 GMT

Kaliningrad: Russia's Weak Spot in Talks with Lithuania
Smoke rises from factories' chimneys in Russia's westernmost territory, Kaliningrad.

STRINGER/AFP/Getty Images

Summary

Russia is using Gazprom to try to counter Lithuania's leverage against Russia in energy negotiations and political maneuvers. Currently, all natural gas that the Russian exclave of Kaliningrad uses comes from Russia proper but transits Lithuania — a situation that Lithuania has used as a key bargaining point in negotiations with Moscow over natural gas prices. However, on Sept. 23, Gazprom chief Alexei Miller and Kaliningrad Gov. Nikolai Tsukanov signed an agreement of understanding and cooperation regarding the construction of a liquefied natural gas import terminal in Kaliningrad. This is meant to challenge Lithuania's position, but whether Russia will follow through with the construction of the terminal remains uncertain.

Moscow could take steps to eliminate the need for the Russian exclave's energy supplies to transit Lithuania....

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